An EIN (Employer Identification Number) is issued by the IRS as a way to track the income related to business activities. It is like a social security number for a business rather than an individual.
- An EIN is not required to apply for fiscal sponsorship. If you are an individual and/or a sole proprietor, your social security number can be used for your fiscally sponsored project. If you plan to incorporate your business, you may want to consider getting an EIN since that is the first step toward forming a company.
- An individual may apply for an EIN with the IRS, in order to delineate which funds are for your business and which are personal funds. Note, the EIN will still be connected to you as an individual and any funds released from your fund balance with Fractured Atlas is your responsibility to report on your taxes.
- Visit the Responsible Parties and Nominees page of the IRS.gov
Things to be Aware of:
- Getting an EIN may not be enough to open a business bank account. You should check with your bank to see what requirements they have in place for business accounts.
- Before you get an EIN, we suggest you contact an attorney or an accountant to discuss how it will affect your unique tax situation.