Business Setup Made Easy: EIN, Entity Type, and Registration Explained

Chad Dickinson • June 13, 2025

Thinking of starting a business but feeling overwhelmed by all the paperwork and legal jargon? You’re not alone. At Arch Tax, we help new business owners simplify the process so they can launch with confidence and clarity.

To make things easier, we put together a short video that walks you through the basics of setting up your business — from getting your EIN to registering with the state.

Step 1: Get Your EIN (Employer Identification Number)
Your EIN is essentially your business's Social Security Number. It’s required for taxes, hiring employees, and opening a business bank account. You can apply online directly with the IRS — it takes 10 minutes or less.'


Apply for your EIN online

Step 2: Choose the Right Entity Type
You’ll need to decide what kind of business structure fits your goals:


  • Single-member LLC – Simple and flexible for solopreneurs
  • Multi-member LLC or Partnership – Ideal for co-owners
  • S-Corp – Can save on self-employment tax with the right setup
  • C-Corp – Great for businesses planning to raise capital or scale big



We recommend speaking with a tax professional before locking in your decision.

Step 3: Register Your Business With the State
Every state has a different registration process, but most can be completed online. Be cautious of third-party sites — always register directly through your state’s official government website.

Step 4: Open a Business Bank Account
Once you’ve secured your EIN and Articles of Organization/Incorporation from the state, you’ll be ready to open your business bank account. This is crucial for keeping personal and business finances separate.

Looking Ahead
As your business grows, consider:


  • How you’ll handle bookkeeping and finances
  • Whether you’ll have W-2 employees or contractors
  • What tax forms you’ll need to file each year

Need Help?
We’re here to answer your questions and guide you through the setup process.  Feel free to schedule a free consultation with us if you are ready to start your own business and need help choosing the right entity.

Tax Tip: Donating After A Disaster
By Chad Dickinson September 12, 2025
Learn how to safely donate after a disaster, avoid charity scams, and make sure your contributions are tax deductible with these IRS-backed tips.
Arch Tax Logo
By Chad Dickinson September 5, 2025
Wondering how long an IRS Offer in Compromise takes? Learn the step-by-step OIC timeline, what slows it down, and how to speed up your chances of approval.
Escape your ex's IRS debt
By Chad Dickinson August 29, 2025
Learn how Innocent Spouse Relief can erase IRS debt caused by your spouse.
Arch Tax Logo
By Chad Dickinson August 20, 2025
Learn how to talk to the IRS with confidence. Discover what to say, what to avoid, and how a tax attorney can protect your rights and negotiate on your behalf.
By Chad Dickinson August 15, 2025
You trust your tax preparer with some of your most sensitive personal and financial information. But what happens if scammers target them—and end up with your data? Unfortunately, there’s a real scam going around that does exactly that. Here’s how it works and how you can protect yourself. The Scam in Action Criminals send fake emails to tax preparers, pretending to be from the tax software company the preparer uses. These emails ask the preparer to “verify” their Electronic Filing Identification Number (EFIN) —a number the IRS uses to identify legitimate tax businesses. The email tells them to send the EFIN information by fax. If the preparer falls for it, scammers can use that EFIN to file fake tax returns in clients’ names—claiming fraudulent refunds. Why This Matters to You If your preparer’s EFIN is stolen, scammers could: File a fake return using your personal information Claim your refund before you do Cause IRS delays and red flags on your account Make it harder and slower for you to get your real refund Signs of Trouble Here are a few warning signs that could mean your personal tax information was compromised: You try to e-file and the IRS says a return has already been filed under your name You get a letter from the IRS about a tax return you didn’t file You receive unexpected tax documents in the mail What You Can Do You can’t stop scammers from targeting tax professionals, but you can take steps to protect yourself: Ask your preparer how they protect client data — A good tax pro will use secure portals and never send sensitive info over unencrypted email. Consider getting an IRS Identity Protection PIN (IP PIN) — This is a 6-digit number that prevents anyone from filing a return in your name without it. Act quickly if you suspect fraud — Contact your tax preparer, report it to the IRS, and follow their steps to secure your account. Bottom Line The EFIN scam targets tax preparers, but it’s taxpayers who can suffer the consequences. By choosing a preparer who takes security seriously—and staying alert to signs of fraud—you can greatly reduce your risk. If you think your information may have been compromised or want help setting up extra IRS protections, contact Arch Tax today . We’ll help you secure your account and make sure your tax return is filed safely and accurately.
By Chad Dickinson August 8, 2025
If you filed for an extension, your new tax deadline is October 15, 2025 . That gives you a little extra time — but not much — to get everything in order. Many taxpayers in your shoes consider hiring a professional to help finish the return. But here’s the catch: Not all tax preparers are created equal.  Some are helpful pros. Others? Not so much. Choose the wrong one, and you could risk your refund — or worse, find yourself in a mess with the IRS. Here are the biggest red flags to watch out for when choosing a tax preparer: 1. They Promise Bigger Refunds Than Everyone Else If someone claims they can get you a “huge refund” before they’ve even looked at your documents, that’s a giant red flag. A legitimate preparer doesn’t make promises until they’ve seen the facts. 2. They Want Your Refund Deposited into Their Bank Account Never agree to this. Your refund should be deposited directly into your bank account — not theirs. This is a shady tactic some preparers use to skim fees or delay payments. 3. They Won’t Sign the Return By law, paid preparers must sign your return and include their Preparer Tax Identification Number (PTIN) . If they refuse? Walk away. 4. They Don’t Ask for Records or Receipts Good tax pros ask a lot of questions and request documentation. If someone is willing to prepare your return based only on a pay stub or vague guesses, that’s a problem. 5. They Base Their Fee on Your Refund Size A preparer who charges a percentage of your refund has a financial incentive to fudge the numbers. Reputable pros charge flat or hourly fees — not a cut of your return. 6. They Can’t Be Reached After Tax Season What happens if the IRS sends you a notice in December? Make sure you’re working with someone who’s available year-round — not just from January to April. What You Should Look For A valid PTIN IRS e-file access Transparency in pricing Willingness to review the return with you Available to answer questions even after October Final Tip: You Are Still Responsible No matter who prepares your return, you are legally responsible for what gets filed. Don’t sign a return you haven’t reviewed — and never sign a blank one. Need Help You Can Trust? At Arch Tax, we pride ourselves on transparency , ethics , and experience . We’ve helped hundreds of clients meet their tax deadlines — without the red flags. Let’s make sure your return gets filed right. Schedule a free consultation today!
What happens if i get audited
By Chad Dickinson July 31, 2025
Worried about getting audited? Learn what happens if the IRS audits you, why it happens, and how Arch Tax can guide you every step of the way—with expert support and real results.
Arch Tax
By Chad Dickinson July 25, 2025
The October 15th tax extension deadline is almost here. Learn key filing tips, payment options, and how to get tax relief if you owe. Don’t wait—get expert help today.
The One Big Beautiful Bill Act
By Chad Dickinson July 18, 2025
The One Big Beautiful Bill Act introduces new IRS deductions starting in 2025—covering tips, overtime, car loan interest, and seniors. Learn how to claim up to $25,000 in tax breaks.
Arch Tax Logo
By Chad Dickinson July 11, 2025
Discover key insights from the 2024 IRS Research Bulletin, including smarter audits, data-driven tax enforcement, and efforts to simplify filing. Stay ahead of upcoming changes in tax administration.