Does My Business Need an EIN (Employer Identification Number)?

What is an EIN (Employer Identification Number) and who needs one? An EIN is the equivalent of a Social Security Number for businesses. Just about all businesses are eligible to apply for an EIN; however, not all businesses need an EIN. In general, your business must apply for an EIN if you answer “yes” to any of the following questions:

  • Do you have employees?
  • Do you operate your business as a corporation or a partnership?
  • Are you required to file Employment, Excise, or Alcohol, Tobacco and Firearms tax returns?
  • Do you withhold taxes on income, other than wages, paid to non-resident aliens?
  • Do you have a Keogh plan?
  • Are you involved with any of the following types of organizations?
    • Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
    • Estates
    • Real Estate Mortgage Investment Conduits (REMIC)
    • Non-profit organizations
    • Plan administrators

Click here to apply for your EIN directly on the IRS website.

Simply Taxes, LLC is a local year-round tax preparation firm with an office located in North Raleigh. Our Raleigh accountants are ready to work one-on-one with you to help maximize your refund opportunity and to provide other tax services in a professional manner.

The information contained within this article is for general guidance only. As such, it should not be used as a substitute for consulting with professional accounting, tax, legal or other competent advisers.

Source: IRS Website

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