2. Who Needs an EIN?
Do You Need an EIN? You need an EIN if you:
- Have or plan to hire employees.
- Operate your business as a corporation, LLC, or partnership.
- File business-related tax returns (e.g., Employment, Excise).
- Withhold taxes on income paid to non-resident aliens.
- Have a retirement plan for your business (e.g., Keogh plan).
- Are involved with trusts, estates, non-profits, or similar entities.
Common Business Scenarios:
- Sole Proprietors: Helpful for separating personal and business finances.
- Freelancers and Independent Contractors: Beneficial for tax management and professional dealings.
Legal Considerations: While the IRS does not share EIN information with immigration authorities, undocumented entrepreneurs should consult with a legal advisor or tax professional to navigate the process safely.
