Federal Employer Identification Number (EIN)
A federal employer identification number, or EIN, is a nine-digit number that the IRS assigns to a business for tax filing and reporting purposes. The EIN is used by business entities such as corporations, partnership, and limited liability companies.
However, most sole proprietors don’t need to obtain an EIN and can use their Social Security number instead unless
– to hire employees;
– to have a Solo 401 (k) retirement plan;
– buy or inherit an existing business;
– to incorporate or form a partnership or limited liability company;
– to file for bankruptcy;
– or, at times, some banks require the EIN to set up a bank account.
Why Would I Get AN EIN If It’s Not Required?
As a sole proprietorship the EIN is not required but could be obtained to use it instead of the individual’s Social Security number.
This would help you with the following:
– Avoid Identity Theft;
– And Help Establish Independent Contractor Status.
How To Obtain an EIN
It is free to obtain and file for an EIN number.
- The best and fastest way is to apply directly at the IRS website. (Link)
- Or by filling out the form and sending by post mail. (Link)
- Or by calling the IRS at 1-800-829-4933 from 7:00 a.m. to 10:00 p.m. (Pacific Time)
If you need help obtaining the EIN, or have any questions, please set an appointment with one of our Business Consultants. We are more than happy to help you obtain your EIN at no cost.