{"id":7035,"date":"2023-06-30T13:42:05","date_gmt":"2023-06-30T19:42:05","guid":{"rendered":"https:\/\/www.blockadvisors.com\/resource-center\/?p=7035"},"modified":"2024-04-19T08:49:26","modified_gmt":"2024-04-19T14:49:26","slug":"irs-ein-application","status":"publish","type":"post","link":"https:\/\/www.blockadvisors.com\/resource-center\/small-business-tax-prep\/irs-ein-application\/","title":{"rendered":"The IRS EIN application: understand when a new EIN number is required"},"content":{"rendered":"
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An Employer Identification Number (EIN)<\/a> is one tool that may help keep your small business and personal records separate. An EIN is a tax ID number that is the business equivalent of a social security number. It is used on your small business tax return, on financial documents, and to open business bank accounts.<\/p>\n\n\n\n

Completing the IRS EIN application<\/a> is a milestone in many small business owners\u2019 journeys. But did you know it may happen more than once? It\u2019s true. As your business matures, it may be necessary to apply for an EIN number again.<\/p>\n\n\n\n

But when is it necessary to obtain a new Employer Identification Number for your business? The experts at Block Advisors are here to help you determine when an IRS EIN is necessary for your business, how to apply for this federal tax ID, and reasons to submit a new IRS EIN application.<\/p>\n\n\n\n

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Getting an EIN doesn’t have to be overwhelming<\/h3>

Chat with a Small Business Certified expert in person or online<\/p>

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Find a Tax Pro near you<\/a><\/div>\n<\/div><\/div><\/div>\n\n\n\n

Reasons to get an IRS EIN<\/h2>\n\n\n\n

Not all businesses are required to have an EIN number.  Many business owners choose to go through the EIN application process to get this specialized tax ID number to help keep their small business records and personal records separate.  In some cases, it’s required.<\/p>\n\n\n\n

Some common reasons businesses are required to get a EIN \u2013 a business tax ID \u2013 include having employees, operating a business as a corporation<\/a> (including S Corp<\/a>) or a partnership<\/a>, and having a qualified retirement plan<\/a> (learn more about tax-advantaged retirement accounts<\/a>).  Other situations<\/a> may also require the business to have an IRS EIN tax ID number.<\/p>\n\n\n\n

Understand when a new tax ID is needed<\/h2>\n\n\n\n

Sometimes, your business may need to obtain a new federal tax ID number by submitting another IRS EIN application. Knowing when to get one for a small business can help avoid headaches down the road. <\/p>\n\n\n\n

If you are a sole proprietorship or single-member LLC, you need to apply for a new business tax ID when the business:<\/p>\n\n\n\n