Do You Need an EIN to Sell Online?
You MUST have an EIN if:
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You operate as an LLC (multi-member), corporation, or partnership
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You hire employees
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You file excise or employment taxes
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You want to open a business bank account
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A payment processor requires one (Stripe, PayPal sometimes do)
You MAY NOT need an EIN if:
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You are a sole proprietor with no employees
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You plan to use your Social Security Number (SSN) instead
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You sell small amounts casually or as a hobby
EIN Requirements by Platform
1. Amazon Seller Central
Amazon usually requires an EIN for:
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LLCs and corporations (mandatory)
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Foreign-owned businesses
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Sellers who want to separate personal identity from business identity
Sole proprietors can use an SSN, but many choose to obtain an EIN to avoid giving Amazon their personal ID number.
Amazon uses your EIN for:
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Tax interviews (W-9/W-8BEN)
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Identity verification
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1099-K reporting
2. Shopify Store Owners
Shopify itself does not require an EIN, but:
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Shopify Payments might require one for businesses
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Other connected payment processors (Stripe, PayPal, Sezzle, etc.) may require it
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You’ll need an EIN to form an LLC or open a business bank account
For U.S. LLCs and corporations, an EIN is essentially required to operate properly.
3. Other Online Marketplaces
| Platform | EIN Required? | Notes |
|---|---|---|
| Etsy | SSN or EIN | Required for 1099-K reporting |
| eBay | SSN or EIN | Business accounts often need an EIN |
| Walmart Marketplace | Usually YES | Requires business verification |
| Shopify (indirect) | Sometimes | Payment processors may require EIN |
| PayPal/Stripe | Not always, but often | Required for business accounts |
Why Online Sellers Should Get an EIN
Even when optional, an EIN is beneficial because it:
Separates personal and business identity
Avoids sharing your SSN with multiple platforms.
Helps you open business financial accounts
Banks, credit cards, and lenders often require an EIN.
Supports tax compliance
Especially for LLCs, corporations, or high-volume sellers.
Simplifies marketplace onboarding
Amazon, Walmart, and some processors verify identity via EIN.
How to Get an EIN (Free)
You can apply:
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Online through the - https://www.einregister.online/
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By phone (502) 547-2551
You’ll receive an EIN Assignment Letter (CP 575), which Amazon/Shopify may require during verification.