Employee ID Number
An Employee Identification Number, also known as an EIN, is a unique and specific number assigned to businesses by the Internal Revenue Service (IRS) for the purpose of tax identification. An EIN is also known as a Taxpayer Identification Number (TIN). Although two different terms and acronyms are commonly used, they both serve the same purpose from a business ID standpoint.
The primary purpose of an EIN is for the IRS to identify taxpayers that are required to file various business tax returns. Businesses that are required to have an EIN number are:
Corporations – All S Corporations as well as C Corporations are required to have an EIN.
Business Partnerships – All business partnerships, whether limited or general, require an EIN number.
LLCs – For specific details on each LLC, please see below:
- Corporation-taxed LLCs are required to have an EIN.
- Multiple-Member LLCs are required to have an EIN.
- Single-Member LLCs with employees are required to have an EIN.
- Single-Member LLCs with NO employees are not required to have an EIN, providing that you do not plan on hiring employees. If so, you will need one.
Sole Proprietorships with employees are required to have an EIN.
Sole Proprietorships with NO employees are not required to have an EIN, providing that you do not plan on hiring employees. If so, you will need one.
An EIN can be obtained online, by phone, or by mail, via the IRS website. The specific details that you will need will depend on the nature of your business, and the timeframe in which you receive your EIN will depend on which application method you choose.
ACS East is the Tri-State area’s leading seller of comprehensive Business ID Solutions, as well as the only provider of training, support and onsite installation for your Business ID System. Whether you are a government institution, healthcare facility, corporate entity, financial institution or educational institution, ACS East has a Business ID Solution that can be tailored to meet your specific needs.
For more information on Business ID Solutions, contact the experts at ACS, who will be happy to assess your unique needs and come up with an ID Solution that works for your specific organization.