How Do I Know If I Need An Employer Identification Number?

According to the IRS, you need an EIN if you:

• Started a new business
• Hired or will hire employees, including household employees
• Opened a bank account that requires an EIN for banking purposes
• Changed the legal character or ownership of your organization (for example, you incorporate a sole proprietorship or form a partnership)
• Purchased a going business
• Created a trust
• Created a pension plan as a plan administrator
• Are a foreign person and need an EIN to comply with IRS withholding regulations
• Are a withholding agent for taxes on non-wage income paid to an alien (such as an individual, a corporation, or a partnership)
• Are a state or local agency
• Are a federal government unit or agency
• Formed a corporation
• Formed a partnership
• Administer an estate formed as a result of a person’s death
• Represent an estate that operates a business after the owner’s death.