All business entities are required to have an EIN to identify the taxpayer. Entities with employees (including household employees for individuals) an EIN is required for tax purposes. Sole proprietors may use their social security number but can also get an EIN for their business purposes.
You need an EIN number if you are:
- Started or are Starting a new business
- Starting payroll for employees, including household employees
- Filing business tax returns
- Are opening a Bank account which requires an EIN
- Setting up a business SEP IRA, 401k, Solo 401k, or Keogh Plan
- Changed the legal character or ownership of your organization (for example, you change from a sole proprietorship to a partnership or an LLC)
- Handling as Estate
- Formed or created a Trust, Corporation, Partnership or LLC
- Setting up a Non-Profit
