Do I Need an EIN?

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An EIN, standing for employer identification number, is also known as a federal tax identification number. It’s a nine-digit number that helps the Internal Revenue Service (IRS) identify your business as an operating entity within the United States of America. If you apply for an EIN number, it also enables business owners to conduct tax-related actions that would otherwise need a social security number.

You will need to register for an EIN if you match any of the following criteria:

 

  • You have workers
  • You operate your business as a partnership or firm
  • You file excise, alcohol, tobacco, employment, or firearms tax returns
  • You withhold taxes on revenue, besides pay, paid to a foreign alien
  • You have a Keogh plan
  • You are involved with a trust, IRA, estate, non-profit, real estate mortgage investment conduit, farmers’ cooperative, or plan administrator program

 

You Will Be Required to Get a New EIN If…

You may need a new employer identification number when the ownership or the structure of the company has changed. Other reasons you might need a new EIN include:

  • You incorporate your business
  • You are subject to bankruptcy reports
  • You receive a company that you run as a sole proprietorship

 

You Will Not Be Required to Obtain a New EIN If…

 

  • You change your company’s name
  • You have multiple companies
  • You change the location of your business

 

Privacy Reasons

Another reason you may want to obtain an employer ID number is for privacy. If you’re a contractor who works with a wide range of different clients, giving them your social security number may lead to theft of your identity.

If you need an EIN, you can easily apply for an EIN online application and check the status of your EIN on our website!

Select Your Entity Type to Apply for a Federal Tax ID Today