Can I Still Get My EIN and Start a Business If I Am in Debt From My Student Loans?

Student loan debt doesn’t prevent you from applying for a tax ID number, or EIN. You’re free to found your own company and operate it. You’re legally required to apply for an EIN if your company has employees or when forming a partnership or corporation. Sole proprietorships or single-person LLCs aren’t required to get an EIN, but applying for one provides easier accounting and better personal data security.

Tips for Successfully Managing Student Loans and a Business

Starting up your own business while still paying off student loans is not impossible; in fact, many successful professionals do exactly that. Here are ways to make a smooth transition from student to business owner:

  • Consolidate your debt: Trying to juggle multiple loans and interest rates is tricky, which can cause you to forget payments. If you refinance and consolidate your debt, you make a single monthly payment to one source.
  • Make payments promptly: Prioritize your loan debt. Not only does it help your credit rating, paying off loans promptly also helps you avoid sizeable late fees.
  • Investigate your options: Forming an LLC or corporation can sometimes separate your personal finances from the business entity. Applying for an EIN and managing your finances separately – ahead of time – helps distinguish the two legally.
Why It’s Important To Get Help

If you decide to file for EIN and form your own business, having legal assistance makes things much easier:

Choosing Your Business Type

There are significant advantages to each type of company, whether single-person LLC, partnership or corporation. When forming a C corporation or S corporation, trusted advisors who explain the process to you and assist with filing are a huge help.

Tax Filing and Student Loans

Knowing what you can and can’t deduct from your taxes related to student loans helps you avoid getting into trouble with the IRS. Student loans aren’t counted as income – unless forgiven – but they’re also not completely deductible.

Contact our helpful experts for assistance with your federal EIN application and other legal documents to get your startup off the ground smoothly.