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Employer
Identification Number (EIN)
When Does Your Business Need One?
There are several instances when you will need to
apply for a federal employer identification number (EIN).
The most common instance is when you are operating a
business and you have employees. If you are operating a sole
proprietorship and you do not have any employees, your social security
number is all that is necessary.
If you are a sole proprietor and you currently have an employer
identification number, you will need to get a new one if you convert to a
partnership or corporation. If you convert to a limited liability company,
you will only need a new employer identification number if you choose to
be taxed as a corporation or partnership.
You will not need a new employer identification number if you only change
the name or location of your business, or if you operate at more than one
business location. You may not transfer or sell your employer
identification number, even if you are transferring your business to a
spouse or other family member.
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