{"id":5173,"date":"2021-10-27T08:06:16","date_gmt":"2021-10-27T13:06:16","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/does-a-sole-proprietorship-need-an-ein.html"},"modified":"2026-05-08T15:04:00","modified_gmt":"2026-05-08T20:04:00","slug":"does-a-sole-proprietorship-need-an-ein","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/does-a-sole-proprietorship-need-an-ein.html","title":{"rendered":"Does a Sole Proprietorship Need an EIN?"},"content":{"rendered":"\n
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Does a Sole Proprietorship Need an EIN?<\/h1>\n\n
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\n By Catherine Hodder, Esq.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\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\n\n

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A sole proprietorship EIN is a unique ID number assigned by the IRS to identify a business structure. While many sole proprietors use a Social Security number, an EIN is required to hire employees, open business bank accounts, or file excise tax returns. An EIN is easily obtainable from the IRS website.<\/p>\n\n <\/div>\n\n\n\n

Among the many advantages of a sole proprietorship<\/span> is its simplicity. It is easy to set up. And there is less paperwork, especially when it comes to taxes.<\/p>\n

As a\u00a0sole proprietor<\/span><\/a>, you file your business income and expenses on your individual tax return<\/span>. Additionally, you use your Social Security number<\/span> for your business activities.<\/p>\n

But if you hire employees<\/span> or open a business bank account<\/span>, you may need an EIN<\/a>.<\/p>\n

File your EIN application with confidence.\u202fOur trusted partner LegalZoom has packages starting at $79.<\/a><\/i><\/b><\/p>\n

What Is an EIN?<\/h2>\n

An EIN<\/a>, or employer identification number<\/span>, is the number the IRS<\/span> assigns to your business. Much like your Social Security number<\/span> identifies you, an EIN identifies your business as a taxpayer<\/span>. Thus, the EIN is sometimes called a taxpayer<\/span> identification number<\/span> or TIN.<\/p>\n

How Do You Apply for an EIN?<\/h2>\n

First, you apply for an EIN by completing IRS<\/span>\u00a0<\/span>Form SS-4<\/span><\/a>\u00a0or filling out an\u00a0online application<\/a>. Then, the IRS<\/span> attaches a nine-digit number<\/span> to your business.<\/p>\n

You use your EIN<\/a> for all your business activities. For example, you will use your EIN when you:<\/p>\n