If you’re filing a DBA in Arizona, you’re already taking steps to build a professional identity for your business. A DBA (Doing Business As) lets you operate under a name that differs from your legal or registered business name. But while registering a DBA enhances your branding and banking capabilities, another critical step is often overlooked—applying for an Employer Identification Number (EIN).
So, should you apply for an EIN when filing a DBA in Arizona?
What Is a DBA?
Before we get to EINs, let’s revisit what a DBA is. In Arizona, a DBA—also known as a fictitious name—allows a business to operate under a trade name different from its legal name. Whether you’re a sole proprietor doing freelance work or an LLC branching out into a new business line, filing a DBA in Arizona helps you conduct operations under a more marketable or descriptive business name.
For example, Jane Smith, a freelance designer, might want to run her services under the name “Designs by Jane.” Without a DBA, she can’t legally use that name for banking or contracts. With a registered DBA, she can open a business bank account, advertise, and receive payments under her brand name.
What Is an EIN?
An Employer Identification Number (EIN) is a nine-digit number issued by the IRS. It functions much like a Social Security Number but is used exclusively to identify your business for tax and financial reporting purposes.
Even if you don’t have employees, many businesses still need or prefer to obtain an EIN because it provides a layer of privacy and simplifies many processes like payroll, opening business bank accounts, and filing taxes.
Is an EIN Required When Filing a DBA in Arizona?
The short answer is: it depends on your business structure.
Let’s break it down:
- Sole Proprietors: If you’re a sole proprietor, you can use your Social Security Number (SSN) for tax purposes. However, most advisors recommend getting an EIN for privacy and convenience. Many banks also require an EIN to open a business bank account under your DBA name—even if you’re a sole proprietor.
- LLCs and Corporations: If your business is structured as a Limited Liability Company (LLC) or corporation, then getting an EIN is mandatory. These are considered separate legal entities from the owner, so the IRS requires an EIN for tax identification purposes.
So, while the state of Arizona doesn’t mandate an EIN specifically for DBA registration, your business activities and financial goals may make it a smart move.
Why You Should Consider Getting an EIN
Whether or not it’s required, there are several benefits to applying for an EIN when filing a DBA:
- Open a Business Bank Account
Most banks in Arizona will not allow you to open a business bank account with just your DBA registration and SSN. They usually require a certified copy of your DBA filing and an EIN. This is because banks need a way to identify the business independently from the owner.
- Add Credibility to Your Business
Having an EIN helps establish your business as legitimate and professional. Vendors, suppliers, and even customers may feel more comfortable doing business with an entity that uses an EIN rather than a personal SSN.
- Protect Your Privacy
Using an EIN helps prevent identity theft. If you’re using your SSN for business transactions, you’re exposing your personal information every time you fill out a W-9 or other tax documents.
- Simplify Hiring and Payroll
If you plan to hire employees in the future, an EIN is non-negotiable. Even if you’re not hiring now, getting one early prepares your business for growth and avoids last-minute scrambling when it’s time to expand.
- Ease of Tax Filing
Even if you’re a one-person operation, having an EIN can make tax filing smoother. You can easily separate your personal and business expenses, helping ensure better organization and accurate record-keeping.
How to Apply for an EIN
The IRS allows you to apply for an EIN free of cost online through their website. You’ll need to provide some basic information:
- The legal name of the business owner or entity
- The type of business (sole proprietor, LLC, corporation, etc.)
- The reason for applying (e.g., banking, hiring, tax filing)
- Mailing address and contact details
- Responsible party’s SSN or existing EIN (if applicable)
It typically takes just a few minutes to complete the application, and you’ll receive your EIN immediately upon submission.
How It Ties Into Filing a DBA in Arizona
When filing a DBA in Arizona, your application will ask for general information about your business, including how it will operate, the trade name being registered, and how that name will be used in commerce. While it’s not mandatory to have an EIN to complete the DBA filing itself, not having one may limit your business functions, especially with regard to banking and taxes.
You will file your DBA at the county level, depending on where your business is located. The application generally includes details such as:
- Business name and address
- Type of business structure
- Business activity description
- Date business commenced
- Owner or partner names
- Trade name to be used
The cost of filing a DBA in Arizona is around $30, and most counties allow for multiple fictitious names to be filed at once.
When to File the EIN—Before or After the DBA?
It’s recommended that you apply for your EIN after securing your DBA name. This ensures the EIN application reflects the correct, registered business name you’ll use in day-to-day operations. However, you can apply for an EIN under your legal name and update it later if necessary.
If you’re planning to use the name for a bank account, loan application, or other official purposes, make sure both your DBA and EIN are active and match appropriately.
Final Thoughts
So, should you apply for an EIN when filing a DBA in Arizona?
If you’re a sole proprietor who wants to keep things simple and doesn’t mind using your SSN, you technically can. But if you’re looking to open a business bank account, hire employees, protect your personal data, or grow your business professionally, getting an EIN is a smart and strategic move.
It’s a small step that opens big doors.
