Who Needs an EIN Number?

The Internal Revenue Service (IRS) tracks each taxpayer by a unique individual number which can only be used by that taxpayer. This is true for both individual persons and businesses. As with Social Security numbers, there are exceptions and regulations as to who needs an EIN number.

Who Needs an EIN

If your business structure takes a form other than sole proprietor you are required to have an EIN. If you establish a retirement fund or hire employees, you are required to have an EIN.

Who Doesn't Need an EIN

If you are a registered non-profit organization or agency with the IRS, you do not need an EIN. If you are a church or civic unit you do not need an EIN.

Identification

The letters EIN are the shortened name for an Employer Identification Number. This number is issued by the IRS to all business which must file tax returns.

Significance

An EIN is what a business uses for identification purposes with the IRS. This is similar to an individual's Social Security Number.

Tips

If you add or change locations you do not need a new EIN. If you change the business name or type of business, you do not need a new EIN.

References

• PDF File for the IRS Publication on EIN Numbers

Resources

• IRS Article Landing Page