July 9, 2020  
 
  Articles for Entrepreneurs  
  Small Business Taxes - EIN Numbers  
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Getting an Employer Identification Number (EIN)

An Employer Identification Number, (EIN, sometimes called Federal Tax ID Number) is a nine-digit number assigned by the IRS. EINs are used by employers, sole proprietors, corporations, partnerships, nonprofit associations, trusts, estates of decedents, government agencies, certain individuals, and other business entities.

You are required to obtain an EIN if you do one or more of the following:

  • Form a C or S corporation or partnership (in this case the EIN serves essentially the same purpose that a social security number does for a sole proprietorship)
  • Pay wages to one or more employees
  • File pension or excise tax returns

A sole proprietorship with no employees, pension plans, or excise taxes does not need an EIN. A sole proprietor can use the social security number for income tax, self-employment, and other tax purposes.

For more detailed information on how to determine whether you should obtain an EIN, refer to the IRS publication Understanding Your EIN. To obtain an EIN you must complete IRS Form SS-4. It is a good idea to apply for an EIN before you open for business so that it will be available when the first taxes must be remitted. Most banks will require an EIN to open a corporate or partnership bank account.


Conversation Board

We greatly appreciate any advice you can provide on this topic. Please contribute your insights on this topic so others can benefit.


Questions, Comments, Tips, and Advice  Code Image - Please contact webmaster if you have problems seeing this image code
Problem Viewing Image
Load New Code

 

 

 

Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary