Employer Identification Number (EIN)
FAQs

An EIN is a 9 digit number assigned by the IRS and is required to be able to identify the tax account of employers and others who do not have employees. The EIN is also a requirement to establish a bank account for all formed businesses (LLCs, Corporations and Nonprofits) and some sole proprietorships. Applying for an EIN is a different process than registering your business with the state. Our services include the option to have us apply for an EIN and communicate with the IRS on your company’s behalf.

Yes, an EIN is required to be able to identify the tax account of employers and others who do not have employees. The EIN is also a requirement to establish a bank account for your business. Applying for an EIN is a different process than registering your business with the state. Our partner’s services include the option to have us apply for an EIN and communicate with the IRS on your company’s behalf.

If operating as a sole proprietor, you may not need to apply for one, but it is highly recommended as it can avoid identify theft, help you establish yourself as an independent contractor and it may be required by your financial institution to establish a bank account. There are circumstances where an EIN is required for a sole proprietor which are:

• you will hire employees
• you buy or inherit a business that you operate as a sole proprietorship
• you have a Keogh or Solo 401(k) retirement plan
• you incorporate or form a partnership or LLC or
• you file for bankruptcy.

If you are using our partner’s services to incorporate your business you will guided through applying for an EIN as part of our business formation service. If you are a sole proprietor (which means you are not going to file your business with the state) and you wish to apply for an EIN, you can do so by clicking here.