Do I need an EIN even if I am applying for a sole proprietorship?
As it has been already known that an EIN is known as a federal tax identification number or an employer identification number and used for identifying businesses for tax-related purposes by the Internal Revenue Service (IRS). It comprises of a nine-digit number.
Significance and requirement of EIN
If the company owners have workers, are part of a Keogh plan or are cooperating with trusts, estates, NGOs, farmers and plan administrations, the IRS is highly encouraging companies to get an EIN online. Also, they are in need to file assuming that they operate as a partnership or Corporation for a non-resident alien.
On the other hand, for banking transactions and all operations, an EIN is needed.
A sole proprietorship, also known as a sole trader, is an unincorporated business with a single owner who pays personal income tax on profits earned from the company. Many sole proprietors do business under their names because creating a separate company or trade name isn’t necessary for that kind of business type. When it is compared to the other types of business, in this type, it is easier to establish.
EIN for Sole Proprietorship
There is no need for a sole proprietorship to get an EIN since the social security number can be used as an EIN. However, it is going to be better if the EIN is taken, because it is more professional. On the condition that an employee is hired, EIN is the must. But if you are not a US citizen and if you don’t have an SSN, then you need to apply for EIN.
You may apply for EIN with our online application service.
Ein-itin.com is a brand of Cohen Investment LLC, act as a Certified Acceptance Agency. Ein-itin.com provides professional services to prepare and apply for an Individual Tax Identification Number (ITIN) to submit through IRS. As a Certified Acceptance agent , Ein-itin.com prepares and submits applications for an Individual Taxpayer Identification Number (“ITIN”) on behalf of their applicants. Ein-itin.com tracks the application processing and notifies ITIN Applicants for their ITIN Confirmations. Ein-itin.com understands the applicant situation, inform before the ITIN Application process. Ein-itin.com helps to applicant to apply for their ITIN in a convenient way to avoid mistakes and rejection for ITIN Application. Any individual may hire us to prepare, submit and obtain his or her ITIN Number (via W7 Form) application to the IRS.