Form SS-4 & Employer Identification Number (EIN)
Question: Does a small company need a tax ID number?
Answer:
- A sole proprietor who does not have any employees and who does not file any excise or pension plan tax returns does not need an employer identification number. In this instance, the sole proprietor uses his or her social security number as the taxpayer identification number.
- If you have an existing EIN as a sole proprietor and become a sole owner of an LLC (Limited Liability Company) that has employees, you need to get a separate EIN to file employment taxes.
Additional Information:
- Publication 1635 (PDF), Understanding Your EIN
- Publication 334, Tax Guide for Small Business
- Form SS-4 (PDF), Application for Employer Identification Number
Category: Small Business, Self Employed, Other Business
Subcategory: Form SS 4 & Employer Identification Number (EIN)
