Business Plan and EIN Application Do You Need One?

Introduction: Is Your “Business” Real or Just a Hobby That Pays for Lattes?

If you’ve ever thought about starting a business, you’ve probably wasted an emotionally confusing amount of time Googling “Do I need an EIN?” while mainlining cold brew out of self respect. Maybe you’ve even bravely drafted a “business plan” or you just called your Notes app Plan to Get Rich. Either way, let’s talk about that magical moment when you realize your side hustle might require actual paperwork beyond doodling logos during a boring Zoom.

Spoiler: Some government agency now cares what you call your sticker shop or Etsy “empire.” And yes, they will find you. But the real question: Do you need a business plan and an EIN application? Or is that something only the LinkedIn try hard and beard oil entrepreneurs need? Let’s do what BuzzFeed quizzes never could give you a brutally honest breakdown.

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“What’s an EIN, and Will It Haunt My Dreams?”

Let’s stop pretending you know what an EIN is. The IRS says it’s an Employer Identification Number basically, a Social Security Number for your business. (Because why shouldn’t every corporate entity get a lifetime of existential dread, too?)

Fun Fact:

  • You need an EIN if you plan to:
    • Hire people who aren’t your reflection in the mirror.
    • Open a business bank account that doesn’t get flagged for Lemonade Stand Money Laundering.
    • Actually pay taxes like a grown up.
    • Impress that one uncle at Thanksgiving.

No your dog’s clothing line does not count unless Muffy is on payroll and can fill out a W 2.

Oh, and “business plan” is not IRS code for “I’ll get around to it” when you’re binge watching TikTok in your pajamas. That document is supposed to help you plan. Wild, right?

Filing for an EIN: Is a Business Plan Legally Required, or Just a Vibe?

Here’s the existential truth: The IRS does NOT care if your business plan is an HBO pilot or a napkin covered in motivational quotes. When you apply for an EIN online (it’s free and weirdly fast like the opposite of the DMV) nobody asks for a five year forecast or your TikTok strategy.

But wait for it a real business plan is actually an adult move.

Why? Because someday you’ll want a bank account, a loan, or maybe to convince your BFF to invest her wedding fund into your NFT driven pizza parlor idea. Those “serious” people? They want to see your business plan.

The IRS lets you apply for an EIN after answering eight questions and promising not to launder money. The bank? They’re gonna need at least bullet points and a font choice.

Business Plan moment:
A business plan isn’t technically required for an EIN application but you’ll need one if you ever want to exist outside your apartment and impress humans besides your cat.

But Seriously Why Bother With a Business Plan If You Just Want an EIN?

Let’s spill the non fat oat milk: Because chaos is NOT a business strategy.

  • A business plan tells you what the heck you’re actually doing and why you need an EIN at all.
  • It’s your cheat sheet for answering:
    • Should you be a sole prop, LLC, S corp or just a cautionary tale on Reddit?
    • Do you actually plan on having employees? Or just “vibe managers” (aka your friends)?
    • Are you going to need that Business Plan for licensing, funding or getting your parents off your back?

Having a business plan means fewer awkward phone calls with city hall, banks, and that one friend who reads Forbes for fun. It’s proof you’ve “thought things through” instead of YOLO-ing your way to IRS mail.

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Newsflash: Banks and Grown Up Partners Still Care if You’re Legit

Picture this: You waltz (or, let’s be real panic-walk) into a bank. “I’d like a business checking account. Here’s my EIN!” The banker clearly questioning every life choice asks for your business plan.

  • Do you stare blankly and hope she accepts your Canva mood board?
  • Do you mumble something about “scaling synergies in a post-influencer world”?
  • Or gasp do you whip out a ridiculously well prepped document and get approved, thus feeling like a LinkedIn deity for six minutes?

The Business Plan is your ticket to getting actual money not just PayPal “friends and family” transfers labeled as rent. Want investors? Lenders? Real clients? Make a plan or the only thing you’ll be managing is your caffeine intake.

Is There a Loophole? (Spoiler: If There Was the IRS Closed It Already.)

You’re probably thinking: Surely there’s a hack where I skip the “grown up” part and just get rich by accident? If you find it call me. In the meantime here’s reality:

  • You technically can apply for an EIN with nothing but dreams and a legal name.
  • But! You’ll trip over yourself at every other step licenses, taxes, banks if you don’t have a Business Plan.

Forget the hack the system mindset. This is America; the system will hack you back. Save yourself the pain and prep a business plan no matter how rough.

Conclusion: You Read This Whole Thing You Must Be Serious

Look, if you’ve made it to the bitter end, you’re either deeply curious, very lost, or are putting off real work. Either way you now know get an EIN, but don’t skip the business plan. Your future self (and your future IRS letter opener) will thank you. Or at least won’t mock you as much at the next awkward family dinner.

Now, go forth and make a Business Plan so impressive even your barista will believe you have a real job because the IRS already does.

(P.S.: If you still want to skip the plan at least make up a BuzzFeed quiz about it. Monetize that existential dread, baby!)

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