In general, almost every business or legal entity in the United States requires an employer ID number. The only exception are sole proprietorships that do not have any employees and do not have to file any excise, alcohol, tobacco and firearms tax returns.  Even nonprofit organizations and other non-business related entities such as churches, clubs, estates, and trusts, etc., must obtain an IRS EIN (tax identification number).

U.S. businesses will generally need to obtain an employer ID number as soon as it hires any employees or meets other guidelines outlined by the IRS. In addition, U.S. banks usually require businesses operating in the United States and other legal entities to obtain an employer ID number before opening a U.S. bank account.

Foreign businesses and other entities are also required to obtain an employer ID number before operating in the United States.

What Business Entities Need An Employer ID Number?

The following business entities operating in the United States require an employer ID number:

• Corporation;

• Limited Liability Company ("LLC");

• Partnership; and

• Sole Proprietor*.

* If a business operates as a sole proprietorship, has no employees and does not file any excise, alcohol, tobacco and firearms tax returns, then an employer ID number is not needed.

Other Legal Entities That Need An IRS EIN (Tax Identification Number)

In addition to the previously listed business entities that require an IRS EIN (tax identification number), the following types of legal entities also require an employer ID number:

• Block/Tenant Association;
• Church or Church-Controlled Organization;
• Community or Volunteer Group;
• Employer/Fiscal Agent (Under IRC Sec 3504);
• Employer Plan (401K, Money Purchase Plans, etc.);
• Estate;
• Farmers' Cooperative;
• Government - Federal/Military, State/Local or Indian Tribal Government;
• Homeowners/Condo Association;
• Household Employer;
• Individual Retirement Arrangement ("IRA");
• Joint Venture;
• Memorial or Scholarship Fund;
• National Guard;
• Plan Administrator;
• Political Organization;
• Parent-Teacher Association ("PTA")/Parent-Teacher Organization ("PTO") or School Organization;
• Real Estate Mortgage Investment Conduit ("REMIC");
• Real Estate Investment Trust ("REIT");
• Regulated Investment Conduit ("RIC");
• Social or Savings Club;
• Sports Team (Community);
• Trust (All Types);
• Withholding Agent;
• Other Non-Profit/Tax Exempt Organization; and
• Other Legal Entities Not Listed Above.

If your legal entity requires an IRS EIN (tax identification number), apply online for an employer ID number now!