EIN Requirements for Real Estate Investors

Nov. 18, 2025, 6:46 p.m.
Real estate investors often wonder whether they need an Employer Identification Number (EIN) for their real estate activities. The IRS does not require every investor to have one—but depending on how you own and operate your real estate business, an EIN may be mandatory. Below is a complete guide.
EIN for Real Estate Investors

1. Do Real Estate Investors Need an EIN?

You need an EIN if your real estate activity is treated as a business entity or if you hire employees.
You may not need an EIN if you invest as an individual without a formal business structure.

2. When Real Estate Investors MUST Have an EIN

 1. You Own Property Through an LLC

  • Single-member LLC:

    • If taxed as a disregarded entity, you do not need an EIN unless you have employees or file specific excise taxes.

    • However, most banks require an EIN to open a business bank account, so investors usually get one anyway.

  • Multi-member LLC:

    • IRS classifies it as a partnership → you must have an EIN to file Form 1065.

 2. You Form a Partnership for a Real Estate Deal

If two or more people jointly operate real estate as a business, the partnership must have an EIN for tax filing.

 3. You Create a Real Estate Corporation

  • C-corporation → EIN required

  • S-corporation → EIN required

4. You Hire Employees

If you hire workers (maintenance, office staff, building employees), you must have an EIN to file payroll taxes.

 5. You Open a Business Bank Account for Your Properties

Even if not required by IRS rules, nearly all banks ask for an EIN for accounts under:

  • LLCs

  • Partnerships

  • Corporations

 6. You Manage Properties as a Business, Not a Passive Investment

If you operate property management, short-term rentals (Airbnb-type with services), or flipping businesses, you typically need an EIN.

3. When Real Estate Investors MAY NOT Need an EIN

You Own Property in Your Own Name as a Sole Investor

If you:

  • Buy rental property personally

  • Report income on Schedule E

  • Have no employees

  • Treat the activity as passive

…you can use your SSN instead of an EIN.

 You Are a Single-Member LLC With No Employees

IRS allows you to use your SSN.
But again, banks and lenders usually prefer or require an EIN.

4. Benefits of Having an EIN for Real Estate Investors

Even when not mandatory, many investors still get an EIN because it helps with:

Privacy

Use the EIN instead of your SSN.

 Banking & Financing

Banks often require an EIN for:

  • Business checking accounts

  • Mortgage applications under an LLC

 Separation of Business and Personal Records

Helps maintain limited liability protection for LLCs.

Clear Bookkeeping

Keeps rental property income and expenses organized.

5. Real Estate Activities That Often Require an EIN

  • House flipping businesses

  • BRRRR investors (Buy, Rehab, Rent, Refinance, Repeat)

  • Short-term rentals with hotel-like services (cleaning, meals, guest services)

  • Syndications and multi-partner investments

  • Real estate development companies

  • Land subdivision businesses

6. How to Get an EIN

You can obtain EIN: