Generally, an employer is a person or organization for whom a worker performs services as an employee. As an employer, you are required to withhold and report employment taxes. To file the various employment tax returns, you need a Taxpayer Identification Number (TIN). Usually, the TIN is an Employer Identification Number (EIN). However, a sole proprietor may use his or her social security number as the TIN if the business has no employees and does not file excise or pension tax returns. A sole proprietorship is the only type of business that may use a social security number rather than a TIN as its EIN.

An entity is considered to be a sole proprietor for federal tax purposes if the individual operates his or her business through a domestic limited liability company (LLC) and does not elect for that LLC to be taxed as a corporation (using Form 8832 ). In such cases, the LLC is disregarded for federal tax purposes. Nonetheless, the LLC must obtain its own EIN if the sole proprietor does not already have one.

To obtain an employer identification number, you must complete Form SS-4, Application for Employer Identification Number. You can also get this form at most Social Security Administration and IRS offices.

After you have completed the Form SS-4, you can obtain the EIN by mail, FAX, or in some cases by phone. The instructions for the Form SS-4 provide both an IRS service center address, as well as, a phone or Fax number for Tele-TIN. By mailing the completed Form SS-4 to the appropriate service center, you can obtain an EIN within 30 days. If you choose to call the Tele-TIN number, you may obtain the EIN immediately. You must have the SS-4 completed before calling Tele-TIN. For information on how to fax your application call 1-800-829-1040.

If you already have an EIN and the organization or ownership of your business changes, you may need to apply for a new number. Some of the circumstances under which a new number is required are as follows:

1. An existing business is purchased or inherited by an individual who will operate it as a sole proprietorship, unless the new owner already has an EIN,
2. A sole proprietorship changes to a partnership,
3. A partnership changes to a sole proprietorship,
4. A corporation changes to a partnership or a sole proprietorship (and the corporation is not an LLC changing its classification using Form 8832 ); or
5. An individual owner dies and the estate takes over the business.

For more information see Publication 1635, Understanding Your EIN. Publications and forms may be downloaded from this site or ordered by calling 1-800-829-3676.

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