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:

01.

You have one or more employees working for the company

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

01.

You have one or more employees working for the company

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

Get Your EIN for your Sole Proprietorship Today!

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