Who Needs a Tax ID Number?

A federal tax identification number, also known as an Employer Identification Number (EIN), is a nine-digit number that the IRS assigns to businesses. It acts like a Social Security number and is a requirement for many regular business activities, including paying payroll, getting tax exemptions, attending trade shows, making certain businesses purchases and more. The IRS details who needs a tax ID number.

  1. Employees

    • If your business has any employees, you need a tax ID number.

    Business Status

    • If your business is a corporation, including an LLC, or a partnership, you need a tax ID number.

    Tax Filing

    • If you file employment, excise, or alcohol, tobacco and firearms tax returns, you are required to have a tax ID number.

    Keogh Plan

    • If you have a Keogh plan, which is a special type of retirement plan, you need a tax ID number.

    Organizational Involvement

    • If you are involved with the following organizations, you need a tax ID number: certain trusts, estates, real estate mortgage investment conduits, nonprofit organizations, farmers' co-ops and plan administrators.

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