When a Partnership Must Obtain an EIN

Nov. 24, 2025, 3:43 p.m.
A partnership in the United States is required to obtain an Employer Identification Number (EIN) in most situations. Unlike sole proprietors—who can sometimes use their SSN—partnerships almost always need a separate federal tax ID to operate legally and file taxes. This guide explains exactly when a partnership must get an EIN, why it’s required, and common scenarios that trigger the need for one.
EIN for Partnerships

Do All Partnerships Need an EIN?

Yes.
Any business classified as a partnership must obtain an EIN, even if:

  • It has no employees

  • It operates under both partners’ names

  • It has minimal or no revenue

  • It is formed verbally (informal partnership)

The IRS requires all partnerships to file Form 1065 (U.S. Return of Partnership Income), and this filing cannot be completed without an EIN.

When a Partnership Is Required to Obtain an EIN

1. When the Business Has Two or More Owners

A partnership automatically exists when two or more people carry on a business for profit.
The moment this structure is formed, an EIN is required.

2. When Filing Federal Tax Returns

A partnership must use an EIN to file:

  • Form 1065 (annual partnership return)

  • K-1 forms (issued to each partner)

These filings require a unique EIN assigned to the partnership.

3. When Hiring Employees

If the partnership hires workers, a new EIN is needed (or if it already has one, it must use it to file payroll taxes).

4. When Opening a Business Bank Account

Banks do not allow partnerships to use SSNs.
An EIN is mandatory for:

  • Business checking accounts

  • Merchant accounts

  • Business credit cards

  • Financing applications

5. When Partner Ownership Changes

A partnership must obtain a new EIN when:

  • The partnership terminates and forms a new legal partnership, or

  • Half or more of ownership changes within 12 months (as per IRS rules for business structure changes)

6. When Converting to or From Another Entity

A new EIN is required when:

  • A sole proprietorship becomes a partnership

  • A partnership becomes an LLC with multiple members

  • A partnership incorporates (C-Corp or S-Corp)

Each structure is considered a new entity by the IRS.

When a Partnership Does Not Need a New EIN

A partnership does not need a new EIN if:

  • It changes business location

  • It changes business name

  • It adds or removes a partner without dissolving the partnership

  • It opens new branches or lines of business

  • It hires employees (you continue to use the same EIN, not a new one)

How to Apply for an EIN

Partnerships can apply using one of these methods:

Online (fastest — immediate EIN)

Via the https://www.einregister.online/

 

 By Phone - (502) 547-2551

 

 Summary

A partnership must obtain an EIN as soon as it is formed, even if it has no employees. The EIN is required for filing partnership taxes, opening bank accounts, hiring employees, and maintaining compliance with IRS regulations.