When would I need to use an EIN?

It can be confusing to understand when to use an EIN. However, we’ve simplified it for you. Your company must obtain an EIN if any of these statements apply to it:

  • It is a corporation, partnership, or an LLC that has opted to be treated as a corporation or partnership.
  • It has employees.
  • It files tax returns for employment, excise, alcohol, tobacco, or firearms.
  • It withholds taxes on income (except wages) for a non-resident.
  • It has a Keogh plan.
  • It is involved with estates, non-profit organizations, real estate mortgage investment conduits, plan administrators, farmers’ cooperatives, and certain kinds of trusts.

If any of these are relevant to your business, you’ll want to complete an online tax ID application.

Other Reasons for Getting an EIN

Even if your business doesn’t meet any of the requirements listed above, you may still want to submit an EIN tax form to GovDocFiling. Sole proprietors and single-member LLCs may still need to get an EIN for the following purposes:

  • Obtaining a company credit card.
  • Opening a business bank account.
  • Getting business licenses or permits.
  • Giving 1099 forms to independent contractors.
  • Paying local or state taxes.

Using your Social Security number for company purposes may also make you more vulnerable to identity theft. Even if you are not required to get an EIN, you may want to apply for an EIN for a sole proprietorship just in case. If you’ve ever wondered how to use an EIN, now you know they can be used for a variety of tasks.

How to Get an EIN

Applying for a business tax ID can be done in only a few minutes and you’ll receive your EIN in an hour or less. All you need to do is prepare business details including the name, mailing address, number of employees, type of business structure, and responsible party. Get started on your EIN application today.