Applying EIN for individual is always try to be done. Yes, it can apply for having an EIN number. Yes, if you are a sole proprietor and don’t have employees then your SSN will work as your Tax ID. But if you do not have the SSN number which is social security number, can’t apply for EIN.
IF you are a non-resident of US, then this may be quite complicated or onerous for you to understand all those things. So that’s why we are here to help you out and take you through a step-by-step process. Therefore, be with us till the last moment of getting accurate information about what is EIN no.
What EIN means?
EIN is a number that is used for identification and it is just like a social security number that has SSN that is being used for a person as well as for running a business. It is our nine-digit number and a unique number that is issued by IRS which is an internal revenue service.
IRS assigns EIN no. to every operating business in the US. So, why IRS is assigning it to every operating business, its only for the purpose of identification and Taxes.
There are some reasons for which you will require your EIN for sure. If you are having any single thing from the given below requirements then surely you should have the EIN. This is being used in connection with your business activities. So, we are advising you not to use your EIN in place of your SSN number or Individual taxpayer identification number (ITIN).
Requirement of an EIN for individual-
- For starting a new business you need EIN.
- In the case of a sole proprietor and need more employees in his business
- To open a business bank account you need an EIN number
- For opening a business line of credit you will require EIN
- Also in the case of a partnership, LLC, Pension plan you need EIN
- For creating trust, it is required
Can an individual have an EIN number?
EIN number is required for the business entities. If Moreover, there is no need to obtain an EIN for most of the proprietors. Because of this, they can use their own Social security number as the tax ID. As EIN number is the unique 9 digit number that helps to identify your business.
But if you are hiring some employees, want to apply for business loans, or file tax returns then you should apply for an EIN number. To apply for an EIN You can for sure apply for an EIN online and this will be quite easy for you. if a person is an international applicant and he is in the US or US possessions. You can also do the EIN request by telephone and it is only for the applicants outside of the US and if a person is not a US resident.
How does it costs for an EIN?
If there are any doubts you do have regarding that how much it will worth to get the EIN no., so don’t worry about this, as it will be free of cost because the IRS doesn’t charge any EIN application fee from you to obtain your EIN number. It will be only in the case if you do have already a Social Security Number or Individual Tax Identification Number (ITIN).
And ensure that for applying for EIN online you should have the Social Security Number or Individual Tax Identification Number. if you do not have this though you would not be able to apply for this as well.
Do I need an EIN number if I am a sole proprietor?
Answer can be that if a sole proprietor has his business and he doesn’t have employees in his organization, though no need to apply for EIN. Further, if he doesn’t file any excise or pension plan tax returns, no need for requesting EIN number.
He may use his firstly got SSN number as his tax ID for doing all the transactions related to his business. It will work as his taxpayer identification number. Definitely, you will require the EIN only when you have a very large business with a lot of number of employees.
Therefore, you can acquire for EIN in many cases. Yes, use the upper give information for the requests of EIN. Instead, if you find any facts and figures difficult to analyze then you may ask us for help.