Employer Identification Number: What to know about the EIN

If you are operating a business in the United States, you may want or may be required to obtain an EIN.

If you are a sole proprietor without employees, you are not required to have an EIN, although you may still want to obtain one so if anyone ever requests your tax ID number (common for subcontractors), you may provide them the business’ EIN instead of your social security number (SSN).

If you are a business with employees, the IRS will require you to have an EIN for tax reporting.

You can apply for an Employer Identification Number online on the IRS website.