01.
You have one or more employees working for the company
What is a Sole Proprietorship
A sole proprietorship is a business entity wherein a single individual owns and operates a company. There’s no formal setup, simply performing business activities automatically grants you sole proprietor status. And because you and your businesses are one and the same, there’s no legal distinction in regard to taxes and liability.
When Does a Sole Proprietorship Need an EIN?
As a sole proprietor business owner, you may be required to have an employer identification number should any of the following circumstances apply to your type business structure:
02.
You have a solo 401(k) retirement plan or a tax-deferred Keogh pension plan
03.
You have entered bankruptcy proceedings
04.
You must apply for a new sole proprietorship EIN number if you purchase or inherit an existing business that you will operate as a sole proprietorship
05.
You have incorporated, formed a partnership, or established an LLC, thus creating a new legal business entity
Benefits of an IRS EIN for a Sole Proprietorship
An employer identification number for a sole proprietorship business owner can provide several tangible benefits, including:
- A federal EIN can be provided in lieu of your Social Security number for independent contracting and federal tax purposes. This helps reduce the likelihood of identity theft
- An EIN signals that you operate as an independent contractor, not an employee, making you a more attractive candidate to would-be clients
- An EIN number allows you to apply for local and state licenses
- Having a sole proprietorship EIN is a requirement to open up a business bank account
Why GOV+
GOV+ takes the confusion and paperwork out of the EIN application process. We’ve combined a cloud-based digital solution and expert customer service team so you can avoid the hassle. Using our one-of-a-kind smart technology, you'll get a federal tax ID number in no time. Simply fill out and submit a single form — we’ll handle the rest. It’s that easy.
Ultra-quick customer service
Get fast, accurate answers to all of your questions at every step. With average 30 second hold times and efficient conversations, you’ll be on your way in no time.
Real-time status updates
No more waiting and wondering about your form’s status. GOV+ offers instant updates and customizable alerts, from the moment of filing to final outcome.
Tailored Transactions
GOV+ technology eliminates needless busywork with forms and applications that adapt to you. Your situation is unique, and you deserve a simple, personalized experience.
Ultra-quick customer service
Get fast, accurate answers to all of your questions at every step. With average 30 second hold times and efficient conversations, you’ll be on your way in no time.
Real-time status updates
No more waiting and wondering about your form’s status. GOV+ offers instant updates and customizable alerts, from the moment of filing to final outcome.
Tailored Transactions
GOV+ technology eliminates needless busywork with forms and applications that adapt to you. Your situation is unique, and you deserve a simple, personalized experience.
Employer ID Number Made Easy