More and more businesses are operating out the business owner’s home or are employing remote, work-from-home employees. This can be beneficial in many ways for a business owner or employee. However, almost every business, even home-based ones, are required to obtain an EIN. In short, an EIN may or may not be necessary if you work from home, but it usually is.

In order for a business to file taxes, they need to have an EIN to put on their tax forms. An EIN is a nine-digit code issued by the IRS that uniquely identifies a business, much like a social security number does for individuals filing their personal taxes. Some types of businesses require an EIN, whether they are home-based or not, if they have these characteristics:

• Businesses that are part of a Keogh plan
• Businesses that operate as a corporation
• Businesses associated with estates, farmers’ cooperatives, trusts, real estate mortgage investment companies, or plan administrators
• Businesses that operate as a partnership
• Businesses that withhold income taxes, other than wages, to be paid to non-resident aliens
• Businesses that file tax returns for employment, alcohol, tobacco, or firearms, or excise

A sole proprietor with no employees who works from home is an exception when it comes to business entities needing an EIN. In this case, the sole proprietor and the business are the same entity, so the owner can use their personal social security number to file both business and personal taxes because they are the same. This is true for any sole proprietor without employees, no matter where their work is based.

If you own a small business and meet the qualifications that require you to obtain an EIN you can click here and GovDocFiling will assist you in obtaining an EIN. Unless you are a sole proprietor without employees, most business owners who work from home will need to apply for an EIN.