{"id":353955,"date":"2022-08-19T07:44:42","date_gmt":"2022-08-19T12:44:42","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/tax\/federal-taxes\/is-a-tax-id-required-for-my-business.html"},"modified":"2023-11-13T08:15:57","modified_gmt":"2023-11-13T13:15:57","slug":"is-a-tax-id-required-for-my-business","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/tax\/federal-taxes\/is-a-tax-id-required-for-my-business.html","title":{"rendered":"Does My Business Need a Tax ID Number?"},"content":{"rendered":"\n
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Does My Business Need a Tax ID Number?<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by J.P. Finet, J.D.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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Key Takeaways<\/h2>\n

An employer identification number (EIN), also called a tax identification number or taxpayer ID, is required for most business entities. As its name implies, this is the nine-digit number used by the Internal Revenue Service (IRS) to identify businesses and track their files. <\/p>\n\n <\/div>\n <\/div>\n<\/div>\n

Whether you need a federal tax identification number will primarily depend on whether or not you have employees. Many states will also require that your business have a state tax ID number that is different than an EIN. Contact your state department of revenue to find out what the rules are for state tax IDs in your state. The following information will help you decide whether your business needs an EIN.<\/p>\r\n

Tax ID Numbers at a Glance<\/h2>\r\n

A federal tax ID number is not required if you are self-employed, operate a sole proprietorship<\/a>, or own a limited liability company (LLC) with no employees. In those situations, you would simply use your own Social Security number (SSN) as a tax ID. You must obtain an EIN if you are a sole proprietor who files pension or excise tax returns. Even partnerships without non-partner employees are required to have tax ID numbers.<\/p>\r\n

While new businesses will always need to request a new tax ID number, there are certain instances where business owners will need to request a new EIN (See "Do You Need a New EIN?<\/a>" from the IRS for more details):<\/p>\r\n