In this post, you’ll learn how to sign up for your EIN, DUNs, UEI, and LLC info, all needed for starting your new business. And all in a step-by-step, easy-to-follow format.
If you’re a fan of TikTok or YouTube, then you’ve probably heard creators shouting out all sorts of acronyms you supposedly need before starting your own business. And guess what? I’m here to add my two cents too! 😊
But here’s the thing: out of the thousands of people on the internet preaching this lesson one way, I’ve heard it said differently with a completely different set of instructions.
So, which do you think sounds more reasonable? When I first heard it, I scoffed at the idea and thought it was the dumbest advice ever. But now, pray tell, I kind of agree with it.
In this post, we’re going to explain all the necessary (and some non-necessary) letters, so that by the end of the article, you’ll know exactly what an EIN, EDU, and LLC are, and whether you need them. And if you stick around until the end, I’ll share a secret that will help you avoid a crucial mistake that most first-time small business owners make!
Let’s explore together…
“Success is not final, failure is not fatal: it is the courage to continue that counts.” – Winston Churchill, former Prime Minister of the UK
What is an EIN Number
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EIN
EIN (Employer Identification Number): An EIN is a unique nine-digit number that identifies your business for tax purposes. You’ll need an EIN if you have employees, operate as a partnership or corporation, or file certain tax returns.
It’s also required when opening a business bank account or obtaining certain licenses and permits. The EIN is also used by the IRS to identify and track business tax returns and other financial transactions.
It’s required for any business that has employees, operates as a partnership or corporation, or has certain types of retirement plans.
Like signing up for a DUNS number, obtaining an EIN is free and there’s no cost associated with obtaining or renewing your EIN.
To sign up for an EIN, visit the IRS website and follow these steps:
- Click on “Apply for an Employer Identification Number (EIN)” and select the appropriate entity type for your business.
- Fill out the online application form with your business information.
- Review your application and submit it. You’ll receive your EIN immediately upon completion.
Go to the IRS.gov
- Click on “Apply for an EIN Online” and follow the prompts.
- Provide your business information, such as legal name, address, and type of business.
- Verify your identity and submit your application.
- Receive your EIN immediately upon completing the application.
LLC
LLC (Limited Liability Company): An LLC is a type of business structure that provides personal liability protection for its owners (known as members) while also allowing for pass-through taxation. This means that the LLC’s profits and losses are passed through to its members and reported in their personal tax returns.
There are several benefits to forming an LLC, including:
Personal liability protection: Members’ personal assets are protected from business debts and liabilities.
Tax flexibility:
An LLC can be taxed as a sole proprietorship, partnership, S corporation, or C corporation, depending on the members’ preference.
Credibility:
An LLC can give your business more credibility and professionalism, which can be beneficial when dealing with customers, vendors, and partners.
To form an LLC, follow these steps:
- Choose a name for your LLC and check that it’s available in your state.
- File Articles of Organization with your state’s Secretary of State office.
- Obtain any necessary business licenses and permits.
- Create an LLC Operating Agreement, which outlines the ownership structure, management, and other details of the business.
- Obtain a DUNS (Data Universal Numbering System) number, which is a unique nine-digit number used to identify your business for credit purposes.
What Does UEI Stand For:
UEI
A UEI (Unique Entity Identifier) is a 13-digit number that is assigned to businesses by the U.S. government. UEIs are used by government agencies to identify businesses when awarding contracts and grants. UEIs are also used by other organizations, such as banks and credit reporting agencies, to identify businesses.
To get a UEI, you can go to the SAM Registration website and create an account. Once you have created an account, you can apply for a UEI. The application process is free and takes about 10 minutes to complete.
Here are the steps on how to get a UEI:
Go to the SAM.gov
- Click on “Create an Account.”
- Enter your business information and create a password.
- Click on “Submit.”
- You will receive an email with a link to activate your account.
- Click on the link in the email to activate your account.
- Once your account is activated, you can apply for a UEI.
Click on “Apply for a UEI.”
- Enter your business information and click on “Submit.”
- You will receive an email with your UEI.
The Benefits of a UEI:
- Increased credibility: A UEI is a unique identifier for your business, and it can help you establish credibility with potential partners and lenders.
- Improved access to capital: Lenders and other financial institutions are more likely to lend money to businesses with UEIs.
- Enhanced visibility: A UEI can help your business get noticed by potential partners and customers.
- Simplified onboarding: Many businesses and organizations require UEIs for onboarding new partners and customers.
What is a DUN’s Number
To obtain a DUN’S number, follow these steps:
The purpose of a DUN’S number is to provide a unique identifier for businesses, which is used by other companies and organizations to check a business’s creditworthiness and reliability. The DUNS is no longer used for government contracting.
Benefits of the DUNs number.
- Increased credibility: A DUN’S number is a unique identifier for your business, and it can help you establish credibility with potential partners and lenders.
- Improved access to capital: Lenders and other financial institutions are more likely to lend money to businesses with DUNS numbers.
- Enhanced visibility: A DUN’S number can help your business get noticed by potential partners and customers.
- Simplified onboarding: Many businesses and organizations require DUNS numbers for onboarding new partners and customers.
To sign up for a DUNS number, follow these steps:
Go to the Dun & Bradstreet website at dnd.com
Click on “Get a DUNS Number” and fill out the application form.
Provide your business information, such as legal name, address, and phone number.
Verify your identity and submit your application.
Wait for approval. You should receive your DUNS number within 30 days.
It’s important to note that signing up for a DUN’S number is free, and there’s no cost associated with obtaining or renewing your DUNS number. The website is littered with advertisements and misleading info, don’t click on anything that cost money unless you want to expedite your Dun’s number.
But over that, it’s “COMPLETELY FREE”.
P.Y.’s 2 Cents Worth
Although you may need all the above services, there’s something even more important to do first. Prior to completing all your paperwork and more, it’s essential to do your proof of concept. This means validating your business idea and making sure that there is a market for your product or service before investing too much time, money, and resources.
Imagine going through the process of getting your LLC, EIN, UEI, DUNS number, and other required paperwork only to find out that your business idea isn’t profitable or that you’ve changed your mind. That would be a waste of time and resources that could have been better spent on testing and refining your business idea.
So, my advice would be to do your proof of concept first. Create a Minimum Viable Product (MVP) and test the market. If everything goes well, then you can move forward with your winning business idea.
By following this approach, you can get valuable feedback from potential customers and make necessary adjustments before fully committing to your business idea. This can save you time and money in the long run and increase your chances of success.
If you’re interested in learning more about how to identify your ideal business, conduct market research, and create a successful MVP, be sure to check out our eBook. You can get a sneak peek by clicking the link below.
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