Who Needs an EIN? Complete Guide by Business Type

Who Needs an EIN?

The IRS identifies several situations in which an EIN is required.

You generally need an EIN if you:

• Have employees
• Need to report employment taxes
• Need to pay certain excise taxes
• Need to pay certain alcohol, tobacco, or firearms taxes
• Withhold taxes on income other than wages paid to a nonresident alien
• Operate a partnership
• Operate an LLC
• Operate a corporation
• Operate a tax-exempt organization
• Administer an estate
• Operate a trust that requires an EIN
• Operate certain retirement plans or IRAs
• Operate a real estate mortgage investment conduit
• Operate a farmers’ cooperative

The IRS also allows an EIN to be requested for certain banking or state tax purposes when it is not otherwise required for federal tax purposes.

However, the precise rule can depend on the entity’s structure and federal tax classification.

EIN Requirements by Business Type

The easiest way to understand who needs an EIN is to look at each type of business or entity separately.

This table is a starting point, not a substitute for the specific IRS rules that apply to your entity.

Who Needs an EIN for Federal Tax Purposes?

An EIN is primarily a federal taxpayer identification number.

The IRS uses EINs to identify the tax accounts of employers and certain other entities that may have no employees.

You may therefore need an EIN even if you do not have employees.

For example, a corporation or partnership generally needs an EIN because the entity itself has federal tax reporting responsibilities.

Similarly, a tax-exempt organization generally needs an EIN even if it has no employees.

Do Corporations Need an EIN?

Corporations generally need an EIN.

A corporation is a separate legal entity, and the IRS uses the EIN to identify the corporation for federal tax filing and reporting.

This applies even if the corporation does not currently have employees.

If you are forming a corporation, the EIN is associated with the corporation rather than replacing the owner’s individual taxpayer identification number.

The current Form SS-4 instructions specifically identify corporations among the entities for which Form SS-4 is used.

Why does a corporation need an EIN?

A corporation may use its EIN for:

• Federal tax returns
• Employment tax filings
• Tax correspondence
• Certain financial accounts
• Information returns
• Other federal tax-related activities

A corporation should keep its EIN documentation with its permanent business records.

See our dedicated guide: EIN for Corporation

Do Partnerships Need an EIN?

A partnership generally needs an EIN.

The IRS identifies partnerships as entities that need an EIN.

The partnership’s EIN identifies the partnership for federal tax purposes.

An individual partner’s SSN does not simply replace the partnership’s EIN when the partnership is required to have one.

The current Form SS-4 instructions also state that a partnership’s legal name should be entered as it appears in the partnership agreement when applying for an EIN.

Does a partnership need an EIN if it has no employees?

Yes.

The EIN requirement for a partnership is not dependent solely on whether the partnership has employees.

This is an important distinction because many people incorrectly assume that an EIN is only necessary when payroll is involved.

See: EIN for Partnership

Do LLCs Need an EIN?

Generally, yes, but LLC taxation requires additional attention.

The IRS lists LLCs among entities that need an EIN.

However, an LLC can receive different federal tax treatment depending on its number of members and elections.

A domestic LLC may be treated for federal income-tax purposes as:

• A disregarded entity
• A partnership
• A corporation

The IRS explains that a domestic LLC with one owner is generally treated as a disregarded entity for federal income-tax purposes unless it elects corporate treatment. A domestic LLC with two or more members is generally treated as a partnership unless it elects to be treated as a corporation.

That means you should not use a simplistic rule such as:

“Every single-member LLC needs an EIN for exactly the same reason.”

The actual federal tax treatment and circumstances matter.

Single-member LLC

A single-member LLC can be treated as a disregarded entity for federal income-tax purposes.

That does not mean that every single-member LLC can automatically ignore EIN requirements.

Separate EIN requirements can arise from employment taxes, certain excise taxes, or other federal obligations.

Multi-member LLC

A domestic multi-member LLC is generally classified as a partnership for federal income-tax purposes unless it elects corporate treatment.

Because partnerships generally need EINs, a multi-member LLC will generally need one.

LLC electing corporate treatment

An LLC that elects to be taxed as a corporation is subject to the EIN rules applicable to its circumstances and corporate tax classification.

For more information: EIN for LLC

Do Sole Proprietors Need an EIN?

Not necessarily.

This is one of the most important distinctions in EIN guidance.

A sole proprietor without employees and without another applicable EIN requirement may not need an EIN for federal tax purposes.

However, a sole proprietor may need an EIN if the circumstances create an EIN requirement.

For example, the IRS identifies employees and certain federal tax obligations as reasons for obtaining an EIN.

A sole proprietor can also request an EIN for certain legitimate business purposes, including banking or state tax purposes, even if the number is not otherwise required for federal tax purposes.

Does a sole proprietor with no employees need an EIN?

Not automatically.

The absence of employees means one common EIN requirement does not apply, but you still need to consider whether another requirement applies.

Does a sole proprietor need a separate EIN for every DBA?

Generally, no.

The current Form SS-4 instructions state that a sole proprietor generally needs only one EIN regardless of the number of businesses operated as sole proprietorships or trade names.

See: EIN for Sole Proprietor

Do Businesses With Employees Need an EIN?

Generally, yes.

The IRS states that businesses with employees need an EIN and uses the EIN to identify the employer’s federal tax account.

This includes situations involving employment tax reporting.

An EIN is used when the employer handles applicable federal employment tax responsibilities and related reporting.

Household employers

The EIN rule can also apply to household employers.

For example, a person who employs a household worker can have federal employment tax responsibilities even though they do not operate a traditional commercial business.

The important point is that EIN requirements are not limited to companies with offices, stores, or large payrolls.

Do Nonprofits Need an EIN?

Yes.

The IRS states that every organization must have an EIN, even if it will not have employees.

A nonprofit organization should distinguish between obtaining an EIN and obtaining federal tax-exempt status.

An EIN:

• Identifies the organization to the IRS
• Does not itself create tax-exempt status
• Does not automatically qualify the organization for exemption
• Is not the same thing as a state tax-exempt number

The IRS specifically warns organizations not to apply for an EIN until they are legally formed.

Does a nonprofit need employees to get an EIN?

No.

The IRS explicitly states that every organization must have an EIN even if it will not have employees.

See: EIN for Nonprofit

Do Churches Need an EIN?

Yes.

Churches and church-controlled organizations are among the organization types addressed by the IRS EIN rules.

The current Form SS-4 is designed for use by employers, corporations, partnerships, trusts, estates, churches, government agencies, Indian tribal entities, certain individuals, and other applicants.

A church should use the appropriate entity classification when applying.

An EIN should not be confused with tax-exempt status.

Do Trusts Need an EIN?

Often, but exceptions apply.

The IRS includes trusts among entities for which an EIN may be required.

However, certain grantor-owned revocable trusts are an important exception under the IRS rules.

This means the answer cannot simply be:

“Every trust needs its own EIN.”

Instead, determine what type of trust you have and how it is treated for federal tax purposes.

The current Form SS-4 instructions identify a trust’s grantor, owner, or trustor as the responsible party for applicable EIN applications.

See: EIN for Trust

Do Estates Need an EIN?

Generally, yes.

An estate generally requires an EIN for federal tax purposes.

When a person dies, the estate can become a separate taxpayer for certain federal tax purposes.

The person responsible for the estate—such as an executor, administrator, personal representative, or other fiduciary—may need to apply for the estate’s EIN.

The current IRS instructions specifically address how an estate’s name should be entered on Form SS-4.

See: EIN for Estate

Do Retirement Plans Need an EIN?

Certain retirement plans and arrangements require an EIN.

The IRS includes retirement plans and IRAs among the entities for which EIN requirements can apply.

The exact rules depend on the type of plan or arrangement.

Because retirement-plan tax rules can be specialized, use the current IRS guidance applicable to the particular plan rather than assuming that every individual retirement account requires a separate EIN.

Do Farmers’ Cooperatives Need an EIN?

Yes.

The IRS lists farmers’ cooperatives among the entity types that need an EIN.

The EIN identifies the cooperative for applicable federal tax purposes.

The entity should maintain its EIN documentation with its tax and organizational records.

Do Real Estate Mortgage Investment Conduits Need an EIN?

Yes.

A real estate mortgage investment conduit, or REMIC, is among the entity types identified by the IRS as needing an EIN.

REMICs have specialized federal tax rules, so their EIN requirements should be considered alongside the applicable REMIC tax and reporting requirements.

Do Government Entities Need an EIN?

Government entities can also have EIN requirements.

The IRS Form SS-4 instructions include government entities among the organizations for which EIN applications can be made.

Government entities also have special rules concerning the responsible party.

The IRS explains that for a government entity, the responsible party is generally the agency or agency representative who can legally bind the entity.

Do Foreign Businesses Need an EIN?

Some do.

A business does not become exempt from EIN requirements simply because its owner or principal place of business is outside the United States.

The relevant question is whether the foreign business or entity has an applicable U.S. federal tax or reporting requirement.

Foreign applicants also have different application procedures.

The IRS states that applicants whose principal place of business is outside the United States or U.S. territories cannot use the online EIN application and should use another IRS-approved application method.

See: EIN for Foreign Applicants

Do Foreign-Owned U.S. LLCs Need an EIN?

The answer depends on the LLC’s structure and federal tax requirements.

Foreign ownership does not by itself answer the EIN question.

A foreign-owned U.S. LLC should consider:

• Whether it is single-member or multi-member
• Its federal tax classification
• Whether it has elected corporate treatment
• Whether it has employees
• Whether it has other federal filing requirements
• Whether special international reporting obligations apply

The IRS explains that LLC classification can differ depending on the number of members and elections made by the LLC.

Because foreign-owned entities can have additional reporting considerations, this is an area where relying on a generic “all LLCs are the same” rule can be misleading.

Do Online Businesses Need an EIN?

An online business follows the same basic EIN rules as other businesses.

Selling through:

• An online store
• A marketplace
• A website
• Social media
• Digital platforms
• Subscription services
• Freelance platforms

does not by itself determine whether an EIN is required.

Instead, look at the legal entity and tax obligations.

For example:

The fact that a business operates entirely online does not eliminate federal EIN requirements.

Do Freelancers Need an EIN?

Not automatically.

A freelancer operating as a sole proprietor may not need an EIN if there are no employees and no other applicable EIN requirement.

However, a freelancer operating through a corporation, partnership, or qualifying LLC generally has different EIN considerations.

Therefore, the word “freelancer” does not determine whether an EIN is required.

Your legal and federal tax structure does.

Do Independent Contractors Need an EIN?

Not necessarily.

An independent contractor can operate as a sole proprietor without automatically needing an EIN.

However, if the contractor has employees, operates through an entity that requires an EIN, or has another applicable federal tax obligation, an EIN may be required.

Do not confuse an EIN requirement with the payer’s requirement to collect a taxpayer identification number on a tax form.

An individual contractor may use an SSN or EIN where permitted by the applicable reporting rules.

Do Businesses With No Employees Need an EIN?

Yes, some do.

This is one of the most important points to understand.

The IRS explicitly recognizes entities that have EINs even though they have no employees.

Examples include:

• Partnerships
• Corporations
• Tax-exempt organizations
• Certain trusts
• Estates
• Other entities subject to EIN requirements

Therefore:

No employees ≠ no EIN requirement.

Instead, ask what type of entity you operate and what federal tax obligations apply.

Can You Get an EIN If You Don’t Technically Need One?

In certain circumstances, yes.

The IRS states that if you do not need an EIN for federal tax purposes, you can still request one for banking or state tax purposes.

This can be useful when a bank, state authority, or another legitimate business requirement calls for a federal identification number.

However, obtaining an EIN does not automatically:

• Turn a sole proprietorship into an LLC
• Turn a business into a corporation
• Change the federal tax classification
• Create tax-exempt status
• Replace an individual’s SSN or ITIN

An EIN is an identification number; it does not itself create a legal entity.

Who Does Not Automatically Need an EIN?

Some people assume that every person earning business income needs an EIN.

That is not correct.

A person operating a business as a sole proprietor may not need an EIN if:

• They have no employees
• No other EIN requirement applies
• They are not operating an entity that requires an EIN
• They do not have another federal tax obligation requiring an EIN

The IRS’s Form SS-4 instructions specifically address sole proprietors and explain when a new EIN becomes necessary after changes such as incorporation or entering into a partnership.

The important word is “automatically.”

A sole proprietor is not automatically required to obtain an EIN simply because they are self-employed.

Who Needs an EIN for Employment Taxes?

If you are required to report employment taxes, you need an EIN.

The IRS’s 2026 Publication 15 states that employers required to report employment taxes or provide tax statements to employees or annuitants need an EIN.

Employment-tax responsibilities can apply to:

• Corporations
• Partnerships
• LLCs
• Sole proprietors
• Household employers
• Other employers

The business structure does not eliminate the EIN requirement when applicable employment-tax obligations exist.

Who Needs an EIN for Excise Taxes?

An EIN can also be required when a business has certain excise-tax obligations.

The IRS specifically lists businesses that need to pay certain excise taxes among those that need an EIN.

Excise taxes apply to particular products, services, and activities rather than to every business.

If your business has an excise-tax obligation, review the relevant IRS requirements to determine the EIN and filing requirements that apply.

Who Needs an EIN for Payments to Nonresident Aliens?

An EIN may be required when you withhold taxes on certain income other than wages paid to a nonresident alien.

The IRS specifically lists this situation among the circumstances requiring an EIN.

This rule is particularly important for businesses working with international individuals or service providers.

International tax withholding rules can be complex, so do not assume that ordinary contractor rules automatically apply to a nonresident alien.

Who Needs an EIN for State Tax Purposes?

A business may need an EIN for a state tax purpose even if the EIN is not otherwise required for federal tax purposes.

The IRS explicitly allows an EIN request for state tax purposes.

However, state requirements vary.

A state may have its own:

• Tax identification number
• Employer registration
• Sales-tax registration
• Payroll account
• Business registration
• Licensing requirements

A federal EIN does not replace every state registration.

Who Needs an EIN for Banking?

An EIN may also be requested for banking purposes.

The IRS specifically recognizes banking as a legitimate reason to request an EIN when one is not otherwise required for federal tax purposes.

Whether a bank actually requires an EIN depends on the bank, account type, and business structure.

If you are opening a business account, check the financial institution’s current documentation requirements.

Does Getting an EIN Make You an Employer?

No.

The name “Employer Identification Number” can be misleading.

An EIN identifies certain businesses and other entities for federal tax purposes.

It does not automatically mean that:

• You have employees
• You are required to hire employees
• You have payroll
• You are classified as an employer for every purpose

The IRS itself describes EINs as being used to identify employers and certain others who have no employees.

Does Every Business Owner Need Their Own EIN?

No.

The EIN generally belongs to the business or other entity, not to the owner personally.

For example, if you own a corporation, the corporation generally has its own EIN.

If you are a sole proprietor, the federal tax treatment can be different, and the IRS has specific rules regarding when the sole proprietor needs an EIN.

If you operate multiple legal entities, each entity may have its own EIN requirements.

The current Form SS-4 instructions also explain that each corporation in an affiliated group must have its own EIN.

Does Each Business Need a Separate EIN?

Separate legal entities generally need separate EINs.

For example, if you operate:

• A corporation
• A partnership
• A separate LLC

you should not assume that all three can use the same EIN.

The EIN identifies the particular entity or taxpayer to which it was assigned.

The IRS Form SS-4 instructions state that each corporation in an affiliated group must have its own EIN.

Sole proprietors have different rules. A sole proprietor generally needs only one EIN regardless of the number of businesses or trade names operated as sole proprietorships.

What Is a Responsible Party?

When applying for an EIN, the IRS requires the applicant to identify a responsible party.

The responsible party is generally the individual who owns, controls, or exercises effective control over the entity and directly or indirectly manages its funds and assets.

For many entities, the responsible party is generally:

The IRS states that, except for government entities, the responsible party must be an individual rather than another entity.

See: EIN Responsible Party

What Is a Nominee?

A nominee is someone who acts on behalf of the true responsible party but does not actually have the required ownership or control.

The IRS says nominees are not authorized to apply for an EIN.

This is particularly important for business owners using formation services or third-party assistance.

A service provider may help prepare or submit an application when properly authorized, but that does not make the service provider the responsible party.

Can You Have More Than One EIN?

A business may have legitimate reasons to have more than one EIN over its lifetime, particularly when its legal structure changes.

However, the IRS currently limits EIN issuance to one EIN per responsible party per day. This applies to online, telephone, fax, and mail requests.

Do not submit multiple applications on the same day simply because you have not received your EIN yet.

The current IRS instructions explicitly state that the one-per-day limitation applies to all EIN requests.

What Happens If Your Business Changes?

A change to your business does not automatically mean you need a new EIN.

Whether a new EIN is required depends on the nature of the change.

For example, the current Form SS-4 instructions specifically address changes such as:

• A sole proprietorship incorporating
• A sole proprietorship becoming a partnership
• A change in organization type
• Purchasing an existing business

The IRS provides specific rules for determining whether a new EIN is required.

Do not apply for a new EIN simply because your address or business information changed.

For certain changes to responsible-party information, the IRS uses Form 8822-B, and changes to responsible-party information must generally be reported within 60 days.

See: Do I Need a New EIN?

How Do You Get an EIN If You Need One?

Once you determine that an EIN is required, you can apply directly through the IRS.

The IRS currently recommends applying electronically when possible.

Eligible applicants can use the IRS online EIN application.

Other applicants may use Form SS-4 through the applicable IRS application method.

The IRS provides the EIN application itself without an IRS application fee.

See: How to Get an EIN

What Information Is Needed to Get an EIN?

The EIN application requires information about the entity and its responsible party.

Depending on the applicant, this can include:

• Legal name
• Trade name, if different
• Mailing address
• Physical address
• Responsible party
• Responsible party’s taxpayer identification number
• Entity type
• LLC information
• Reason for applying
• Date the business started or was acquired
• Closing month of accounting year
• Expected number of employees
• First date wages were paid
• Principal business activity

The current Form SS-4 contains these fields and provides separate instructions for completing them.

See: EIN Requirements

Who Needs an EIN? A Simple Checklist

You should investigate an EIN requirement if any of the following applies to you:

Frequently Asked Questions