An EIN (Employment Identification Number) is assigned by the IRS for businesses that have registered as any type of entity (corporation, partnership, trust). It is the number used to identify the business for tax purposes, and to allow the business to open financial accounts with the business name.
As a sole proprietor without any employees, you would never have to register for an EIN. However, I recommend that you do register for this identification number. You are probably wondering why I recommend this to you if there is no requirement to do so. My response is for your protection. Continue reading “Reasons to Consider Applying for an EIN as a Sole Proprietor”