All businesses with employees (including those under the structure of a sole proprietorship) must obtain an Employer Identification Number (EIN). An EIN (also informally called a “federal ID number”) is obtained, free of charge, from the website of the federal Internal Revenue Service (IRS) agency (of the U.S. Treasury Department).
Businesses operating as general partnerships or registered under a formal entity structure (i.e., LLCs, corporations and others) are required to obtain an EIN, as well.
You can apply for an EIN online, through the mail or by phone. To start, the Responsible Party for the business will need to provide their personal Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
An EIN is also normally required to open a business banking account and establishishing business credit.
