A EIN is very important. it is used to identify a business entity, trust, estate, and various other entity types. All businesses in general need a EIN, according to the IRS. A EIN is usually required for licensing and permitting as well as opening a business bank account.
You will need an EIN if any of the following apply:
- You operate as a Partnership, LLC, Corporation, or as a Sole Proprietor
- You have employees
- Withhold employee taxes from wages paid to non-residential aliens.
- File Taxation forms such as: Excise, sales, employment, or Alcohol Tobacco & Firearms.
- Have a tax-deferred pension plan, or KEOGH.