An Employer Identification Number (EIN) is a 9-digit number issued by the IRS for the purposes of identifying a particular business\u2019 tax account. The EIN format is XX-XXXXXXX..<\/p>\n
EINs are used by employers, sole proprietors, corporations, partnerships, non-profits, trusts, estates of decedents, government agencies, certain individuals, and other business entities. These entities must provide their EIN on every form\/communication that is sent to the Internal Revenue Service (IRS) or the Social Security Administration (SSA).<\/p>\n
Note that you should have only 1 (one) EIN for the same business entity. If you do not have an EIN by the time your tax return is due, enter \u201cApplied For\u201d (and the date that you applied) wherever an EIN is requested. Do not use your Social Security Number (SSN) in lieu of an EIN.<\/em><\/p>\n >><\/span> Apply for an EIN Online<\/span><\/strong><\/p>\n If you are required to report employment taxes or give tax statements to employees or annuitants, you will need an EIN. You will also need an EIN if you pay excise tax.<\/p>\n In general, you will need an EIN if any of the following apply:<\/p>\n \u2022 You have employees RELATED: 5 Tax Tips for New Businesses<\/a><\/p>\n There are also a number of circumstances where you may need to apply for a new<\/em> EIN. Below are the EIN guidelines for sole proprietorships, partnerships, corporations, estates, and trusts.<\/p>\n Sole Proprietorships<\/strong><\/u><\/p>\n If you have a sole proprietorship, you will need a new EIN if any of the following apply:<\/p>\n \u2022 You are subject to a bankruptcy proceeding A sole proprietorship does not need a new EIN if any of the following are true:<\/p>\n \u2022 You change the name of your business Partnerships<\/strong><\/u><\/p>\n As a partnership, you will need a new EIN if any of the following apply:<\/p>\n \u2022 You incorporate A partnership does not need a new EIN if any of the following apply:<\/p>\n \u2022 The partnership declares bankruptcy Corporations<\/strong><\/u><\/p>\n A corporation must apply for a new EIN if any of the following are true:<\/p>\n \u2022 It is a subsidiary of a corporation and currently uses the parent\u2019s corporate EIN, or it becomes a subsidiary of a corporation A corporation does not need a new EIN if any of the following apply:<\/p>\n \u2022 It is a division of a corporation Estates<\/strong><\/u><\/p>\n An estate will need a new EIN if any of the following apply:<\/p>\n \u2022 A trust is created with estate funds (not simply a continuation of the estate) An estate does not need a new EIN if the following statement is true:<\/p>\n \u2022 The administrator, personal representative, or executor changes their name or address<\/p>\n Trusts<\/strong><\/u><\/p>\n A trust will need a new EIN if any of the following apply:<\/p>\n \u2022 One person is the grantor\/maker of many trusts A trust does not need a new EIN if any of the following apply:<\/p>\n \u2022 The trustee changes For more information, refer to the IRS website<\/a> and Publication 1635 (Employer Identification Number)<\/a>.<\/p>\n There are 3 main ways to obtain an EIN: you can apply online, by fax, or by paper mail.<\/p>\nDo You Need an EIN?<\/strong><\/h3>\n
\n\u2022 You operate your business as a corporation or a partnership
\n\u2022 You file any of these tax returns: Employment, Excise, or Alcohol, Tobacco, and Firearms
\n\u2022 You withhold taxes<\/a> on income (other than wages) paid to a non-resident alien
\n\u2022 You have a Keogh plan
\n\u2022 You are involved with any of these types of organizations: Trusts (except certain grantor-owned revocable trusts), IRAs, Exempt Organization Business Income Tax Returns, Estates, Real Estate Mortgage Investment Conduits (REMICs), Non-Profit Organizations, Farmers\u2019 Cooperatives, or Plan Administrators<\/p>\n
\n\u2022 You incorporate
\n\u2022 You take in partners and operate as a partnership
\n\u2022 You buy or inherit an existing business that you operate as a sole proprietorship<\/p>\n
\n\u2022 Your change your business location or add locations (e.g., stores, plants, or branches of the entity)
\n\u2022 You operate multiple businesses (e.g., stores, plants, or branches of the entity)<\/p>\n
\n\u2022 One of the partners takes over and operates as a sole proprietorship
\n\u2022 The partnership is terminated and a new partnership is begun<\/p>\n
\n\u2022 The partnership name changes
\n\u2022 The location of the partnership changes or new locations are added (e.g., stores, plants, or branches of the entity)
\n\u2022 The partnership terminates under IRC Section 708(b)(1)(B) and a new partnership is formed as a result
\n\u2022 50% or more of the ownership of the partnership changes hands within a 12-month period<\/p>\n
\n\u2022 The corporation becomes a sole proprietorship or partnership
\n\u2022 A new corporation is created after a statutory merger
\n\u2022 It receives a new corporate charter from the Secretary of State<\/p>\n
\n\u2022 After a corporate merger, the surviving corporation uses the existing EIN
\n\u2022 The corporation declares bankruptcy
\n\u2022 The corporation name changes
\n\u2022 The location of the corporation changes or new locations are added (e.g., stores, plants, or branches of the entity)
\n\u2022 It elects to be taxed as an S Corporation
\n\u2022 Reorganization of a corporation only changes the identity or place
\n\u2022 There is conversion at the state level with business structure remaining unchanged<\/p>\n
\n\u2022 You represent an estate that operates a business after the owner\u2019s death<\/p>\n
\n\u2022 A trust changes to an estate
\n\u2022 A living or intervivos trust changes to a testamentary trust
\n\u2022 A living trust terminates by distributing its property to a residual trust<\/p>\n
\n\u2022 The grantor or beneficiary changes their name or address<\/p>\nHow to Get an EIN<\/strong><\/h3>\n