EIN

Situations Where You Don’t Need an EIN

Situations Where You Don’t Need an EIN

Situations where you don’t need an EIN

 

In most cases, you are required to have an EIN, but in other cases, you don’t need to have one at all. As we said before, an EIN is used by the IRS – Internal Revenue Service to track some legal entities and tax responsibilities. Some types of businesses are not legally separated from their owners and don’t need an EIN. Before applying online, you should be sure if you need a tax ID for your business.

When is a tax ID needed?

If you have a sole proprietorship or single-member LLCs without any employees, you may, of course, use your social security number instead of an EIN or tax ID.

These two types of businesses don’t need to have it. However, as we have already mentioned it before, having it some has advantages even if it is not required.

Having an EIN online

EIN is beneficial when you put the name of the business, hire employees, establish a payroll, get special licenses and local permits, open a bank account and so on. The best and most comfortable and fastest way of applying it is the online platform.

Get it online and start growing your business ASAP.