Do you need an Employer Identification Number (EIN)?

An Employer Identification Number, or EIN, is a federal tax ID number issued by the Internal Revenue Service (IRS) to identify businesses and other entities for tax purposes. 

You will need an EIN if you:

  • Have employees
  • Will need to pay employment, excise or alcohol, tobacco, and firearms taxes
  • Withhold taxes on income, other than wages, paid to a non-resident alien

If you don't need an EIN for federal tax purposes, you can still request one for banking or state taxes purposes. 

You also need an EIN to operate any of these entities:

  • Partnership
  • Limited liability company (LLC)
  • Corporation
  • Tax-exempt organization

If your business is operating as a sole proprietor, you can register your business using your Social Security Number (SSN); however, if you would like to register your business name or Doing Business As (DBA) on your business-related accounts a EIN may be required.

Learn more and apply for your EIN number for free from the IRS. 

 

Watch this video overview to learn more about Employer Identification Numbers.

 

Employer Identification Number FAQs

 

Each business is different, but most sole proprietorships are identified by the owner’s Social Security Number (SSN) when filing for the business rather than an EIN. 

If required, you should register your business with the SC Secretary of State first. This question will be asked on the EIN application. 

Learn more about registering with the SC Secretary of State.