Apply For Employer Identification Number
An EIN identifies the business for federal and state tax purposes. Many financial institutions will not open a commercial banking account under an assumed (“doing business as” – DBA) name without the EIN. Sole proprietorships without employees ARE NOT REQUIRED to have an EIN and may use the owner’s social security number for tax purposes. However, a sole proprietor without employees may apply for and receive an EIN as an alternative to using a social security number, which could increase the chances of identity theft.
An EIN must be obtained if the business is set up as a partnership, a corporation for profit or nonprofit, a limited liability company, a trust or estate, or a sole proprietorship that pays wages to one or more employees. NOTE: If services are performed for a corporation, the owner is an employee of the corporation and subject to all employment taxes.
An EIN is required on any return, statement, or other document if you are an employer. Individuals whofile Schedule C or I must use EINs when filing excise, employment, alcohol, tobacco or firearms returns.
• If you become the new owner of an existing business, you cannot use the EIN of the previous owner.
• An existing business that adds, opens or acquires a new operation of similar type may use its current EIN for both the existing and new operations. However, a new establishment must obtain its own EIN if its line of business is different from the existing operation.
An EIN form (SS-4) can be obtained from the IRS online at www.irs.gov or call 800.829.4933. The application should be completed early enough to allow processing time for an EIN number to be issued.