An EIN is a free federal tax ID number from the IRS; a sole proprietor with no employees often isn't required to have one, but it lets you keep your Social Security number off W-9s and makes opening a business bank account easier. A separate business bank account is the single most useful piece of beginner paperwork, because every other step (bookkeeping, taxes, LLC protection) depends on it.
Below: when you need an EIN and how to get one, what banks ask for, which licenses and permits to check, and the full beginner paperwork list in the order that saves you backtracking. Licenses, permits and filing requirements vary by state, county and city, so confirm locally with your clerk's office and an accountant.
What is an EIN, and does a balloon business need one?
An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify a business, the way your Social Security number identifies you.
In general:
| Your situation | EIN typically... |
|---|---|
| Sole proprietor, no employees | Not required, but useful |
| Single-member LLC, no employees | Often useful; some banks and states expect one |
| Multi-member LLC or corporation | Generally required |
| You hire employees | Generally required |
Even when it's optional, an EIN is worth getting for three reasons:
- W-9s without your SSN. Corporate clients, schools and some venues ask vendors for a W-9 before paying. With an EIN, you put that on the form instead of your Social Security number.
- Bank accounts. Many banks ask for an EIN to open an account in a business name.
- It signals a real business. Payment platforms and suppliers' wholesale accounts may ask for a tax ID.
How to get an EIN (and the fake-fee trap)
You can apply for an EIN directly on IRS.gov, and the IRS doesn't charge for it. The online application typically takes a few minutes and gives you the number at the end.
The trap: search results often show third-party sites that look official and charge a fee to file the same free application for you. Type IRS.gov directly into your browser and start there.
Have ready: your legal name and SSN, your business name (if you have a DBA or LLC), your business address, and your entity type. If you're forming an LLC, form it first, then get the EIN in the LLC's name. Not sure about the LLC yet? Read Does a Balloon Decorator Need an LLC?, the overview of this business setup series.
Save the IRS confirmation letter as a PDF in a folder called "Business documents." Banks sometimes ask for it.
Do you need a separate business bank account?
Not always legally, but practically, yes. A separate account is what makes everything else work:
- Bookkeeping: your bank statement becomes your record of income and expenses. See Bookkeeping for Balloon Decorators.
- Taxes: you can see profit clearly and set money aside.
- LLC protection: mixing personal and business money is one of the ways owners weaken their LLC's liability protection.
- Clients: a deposit to "[Business name]" looks more professional than a personal Venmo with your kid's birthday photo as the avatar.
What banks commonly ask for (requirements vary by bank and entity type):
- Government-issued photo ID
- Your EIN (or SSN for some sole proprietor accounts)
- Your DBA certificate, if you use a business name as a sole proprietor
- LLC formation documents and sometimes an operating agreement, if you have an LLC
- An opening deposit
Open two accounts: a business checking for everything that comes in and goes out, and a business savings for taxes. Two accounts make the tax set-aside automatic instead of a mental note.
Business license and permits: what to check
There isn't one national "balloon business license." What you need depends on where you live and work. Check each of these:
- City or county business license. Many localities require one to operate any business. Call or search your city and county clerk's office.
- Home occupation permit. Some cities and HOAs regulate businesses run from home, especially with customer pickups (grab and go) or deliveries.
- Sales tax registration (seller's permit). If your state taxes what you sell, you'll typically need to register before collecting. See Sales Tax on Balloon Decor.
- DBA or assumed name filing, if you operate under a name other than your legal name. Covered in How to Name and Register a Balloon Business.
- Venue requirements. Some venues require insurance certificates or vendor registration. See Balloon Business Insurance.
When you call a clerk's office, this works:
Hi, I'm starting a home-based event decorating business (balloon decor for parties and events). I deliver and set up at clients' homes and venues, and sometimes clients pick up orders from my home. What business license or permits do I need to operate in [city/county]?
The beginner paperwork list, in order
Doing these in this order avoids redoing anything:
| Step | What | Where | Why this order |
|---|---|---|---|
| 1 | Choose and check your business name | State entity search, USPTO, Instagram, domain | Everything else uses the name |
| 2 | Decide sole proprietor or LLC | Accountant or attorney consult | Determines what you file next |
| 3 | File DBA or form LLC | County/state (DBA) or Secretary of State (LLC) | Bank and EIN need the legal name |
| 4 | Get your EIN | IRS.gov (free) | Bank usually asks for it |
| 5 | Open business checking and savings | Your bank or credit union | Needs name docs and EIN |
| 6 | Register for sales tax, if required | State tax agency | Before you collect any |
| 7 | Get local business license and permits | City/county clerk | Often asks for EIN and name |
| 8 | Get liability insurance | Agent or insurer | Before your next venue or install job |
| 9 | Set up payment apps as business profiles | Venmo, Cash App, card processor | Payments land in the business account |
| 10 | Put the business name on your agreement and quotes | Your booking tools | Clients contract with the business |
You don't need to finish all ten before your next job. But steps 4 and 5 are quick, and they make every job after this one cleaner.
Where your money should flow
Once the accounts exist, every payment follows the same path:
- Client pays retainer or balance → business checking.
- Same day: sales tax collected + your income tax percentage → business savings (tax).
- Supplies, helpers, fees → paid from business checking.
- You pay yourself → a recorded transfer from business checking to personal checking, on a set schedule.
Example, with made-up numbers: say you book 6 jobs at $400 in a month, $2,400 total, with no sales tax in this example. Supplies and helpers cost $900. Profit: $2,400 − $900 = $1,500. If your accountant suggests setting aside an example 25% of profit, that's $1,500 × 0.25 = $375 into tax savings. That leaves $1,125 you can pay yourself or reinvest, and you know exactly where it came from.
The W-9 question from corporate clients
When a company, school or church books you, accounts payable will often ask for a W-9 before they cut a check. With an EIN, it takes two minutes: your business name, entity type, address and EIN. Keep a signed PDF ready to send.
Corporate clients may also pay on terms like net-30, which changes your cash flow. Pricing Balloon Decor for Corporate Clients covers invoices, W-9s and payment terms.
Once the paperwork is in place, your public face should match it: a booking link in your bio with your business name on it.
Frequently asked questions
Does a balloon business need an EIN?
A sole proprietor with no employees often isn't required to have one, but it's free from the IRS and useful. It lets you put a business tax ID on W-9s instead of your Social Security number, and many banks ask for it to open a business account. LLCs with more than one member and businesses with employees generally need one.
How much does an EIN cost?
The IRS doesn't charge for an EIN when you apply directly on IRS.gov. Some third-party websites charge a fee to file the free application for you, so go straight to IRS.gov. The online application typically gives you the number right away.
What do I need to open a business bank account for my balloon business?
Banks commonly ask for photo ID, your EIN or SSN, and proof of your business name, like a DBA certificate or LLC formation documents. Requirements vary by bank and entity type, so call ahead. Open a savings account at the same time for taxes.
Do I need a business license to do balloon decor from home?
Many cities and counties require a general business license, and some require a home occupation permit for home-based businesses, especially with customer pickups. Requirements vary widely by location. Call your city or county clerk's office and describe what you do.
What order should I do my balloon business paperwork in?
Choose your name, decide sole proprietor or LLC, file a DBA or LLC, get your EIN, open business bank accounts, register for sales tax if required, get local licenses, get insurance, and then update your payment apps and agreements. That order avoids redoing steps because each one uses the previous one's documents.