Starting a business involves many crucial steps, and understanding the correct sequence can prevent headaches and delays. Two common requirements entrepreneurs grapple with are obtaining an Employer Identification Number (EIN) and registering a Doing Business As (DBA) name. The question of whether to get an EIN or a DBA first is a frequent point of confusion. While the IRS requires an EIN for certain business structures and activities, a DBA is a state-level or local requirement for operating under a name different from your legal business name. The order in which you tackle these depends heavily on your specific business structure and operational needs. This guide will break down the purpose of each, the typical scenarios for applying for them, and the recommended order for most new businesses forming in the United States. Whether you're forming an LLC in Delaware, a Sole Proprietorship in Texas, or a C-Corp in California, understanding this distinction is vital for compliance and smooth operation. Lovie is here to help you navigate these foundational steps, ensuring your business is set up correctly from the start.
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