Who Is Required to Have an EIN in the United States

Nov. 21, 2025, 7:15 p.m.
An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS to identify a business for tax and reporting purposes. While many small business owners believe an EIN is only needed for hiring employees, the IRS actually requires an EIN in many other situations. Failing to obtain one when required can lead to delays in banking, tax filings, and state business registrations. Below is a detailed breakdown of who is required to have an EIN in the United States.
EIN Online requirements

1. Businesses With Employees

Any business that hires employees—even part-time or temporary—must have an EIN.

This includes:

  • Sole proprietorships

  • Partnerships

  • LLCs

  • Corporations

  • Nonprofits

The EIN is used to file payroll taxes, report wages, and submit employment-related returns.

2. Corporations and S-Corporations

All corporations must obtain an EIN, regardless of whether they have employees.

This includes:

  • C-Corporations

  • S-Corporations

  • Professional corporations

  • Close corporations

Without an EIN, these entities cannot file corporate tax returns.

3. Multi-Member LLCs

Any LLC with more than one member is required to have an EIN—no exceptions.
The IRS treats multi-member LLCs as partnerships unless they elect corporate taxation.

4. Single-Member LLCs (in specific situations)

A single-member LLC needs an EIN if it:

  • Elects S-Corp or C-Corp taxation

  • Has employees

  • Pays excise taxes

  • Needs to open certain business bank accounts

  • Operates under rules requiring a separate taxpayer ID

Otherwise, a single-member LLC with no employees may use the owner’s SSN—but many banks still require an EIN.

5. Partnerships

All partnerships (including limited partnerships and LLPs) must have an EIN.
They cannot legally operate or file a partnership return (Form 1065) without one.

6. Trusts and Estates

Several types of trusts and estates are required to have EINs, including:

  • Irrevocable trusts

  • Testamentary trusts

  • Bankruptcy estates

  • Estates of deceased individuals

These entities use the EIN to file fiduciary and estate tax returns.

7. Nonprofit Organizations

All nonprofits must obtain an EIN, even if they have no employees.

This includes:

  • Charities

  • Foundations

  • Churches

  • Associations

An EIN is required before applying for 501(c)(3) tax-exempt status.

8. Businesses That File Excise Taxes

Any business involved in activities subject to federal excise taxes must have an EIN.

Common examples:

  • Trucking companies (for HVUT Form 2290)

  • Fuel tax filers

  • Wagering or firearms businesses

Even sole proprietors must obtain an EIN if excise tax applies.

9. Certain Real Estate Investment Structures

You must have an EIN if you operate:

  • Real estate partnerships

  • Property management businesses

  • Investment groups

  • Syndications

  • REIT-structured entities

Single-member landlords may not be required, but multi-member arrangements always are.

10. Businesses Involved in Banking or Financial Transactions

You are required to have an EIN if your business needs to:

  • Open a business bank account

  • Apply for business credit

  • File financial compliance reports

  • Establish merchant accounts (Stripe, PayPal, Square)

Most financial institutions will not accept an SSN for business operations.

11. Certain Individuals Acting in Business Roles

You need an EIN if you serve as:

  • A plan administrator for employee retirement plans

  • A fiduciary for certain trusts

  • A bankruptcy trustee

The IRS requires a separate EIN for handling these responsibilities.

12. Other Situations That Require an EIN

You must obtain an EIN if you:

  • Withhold taxes on income paid to non-resident aliens

  • Form a farmers’ cooperative

  • Operate as a state or local government entity

  • Are required to file information returns such as 1099s

Summary: Who Must Have an EIN

You must have an EIN if:

✔ You hire employees
✔ You operate as a corporation or partnership
✔ You form a multi-member LLC
✔ You run a nonprofit
✔ You file excise tax returns
✔ You administer a trust or estate
✔ You need it for banking or compliance reasons