A sole proprietor or a single-member LLC with no employees and no applicable federal excise-tax filing may not need an EIN for federal tax purposes, but other facts can make one required or useful.
Sole proprietors
A sole proprietor generally needs an EIN when hiring employees, filing certain excise or other business tax returns, or meeting another federal filing requirement. A sole proprietor who does not need an EIN may use an SSN or ITIN for applicable federal tax reporting.
Single-member LLCs
A single-member LLC treated as a disregarded entity generally does not need its own EIN when it has no employees and no excise-tax liability. For federal income-tax information reporting, the owner’s name and taxpayer identification number may be required rather than the LLC’s EIN.
The LLC needs its own EIN for employment taxes and certain excise taxes. It may also obtain an EIN when a bank or state tax rule requires one, even if federal income-tax rules alone would not.
Cases that generally require an EIN
- Hiring employees.
- Operating a partnership or corporation.
- Filing applicable employment, excise, alcohol, tobacco, or firearms tax returns.
- Operating certain trusts, estates, retirement plans, or tax-exempt organizations.
Do not request a second number unnecessarily
A business name or address change alone generally does not require a new EIN. Ownership or entity-structure changes may require one, depending on the entity type. Check the IRS entity-specific rules before applying again.
Official sources
Related
EIN overview · Apply for an EIN