Why is EIN Need For A Sole Proprietor?
There is no need for sole proprietors to get EIN. Social security number can be used as EIN in the most cases. However, sometimes EIN differentiates at some points from social security number. In some instances, EIN is such a must number for things to progress more regularly. Please go on to read to learn points differentiate EIN from social security number.
EIN is needed for some cases as follow;
- If employees are going to be hired, if Keogh or solo 401 (k) are going to be opened or while applying for bankruptcy protection.
- If the one is on the process to buy an existing company or manage it as a sole proprietorship.
- If the one is going to form a partnership or LLC
Even if the federal government does not desire EIN, most of the banks will enforce its clients to get EIN.
Despite all these, EIN should be obtained to pass the legal process more comfortably and to make things easier and to pass all bureaucratic stages without any problems.