Who Needs an EIN? (Individuals, businesses, and special cases)

1. Businesses That MUST Have an EIN

 Corporations (C-Corp and S-Corp)

All corporations are required to have an EIN, even if they have no employees.

 Multi-Member LLCs

Any LLC with more than one member must obtain an EIN.

 Partnerships

Any general or limited partnership requires an EIN.

 Businesses With Employees

If you hire even one employee (full-time, part-time, or seasonal), you must obtain an EIN for payroll and employment taxes.

 Nonprofit Organizations

Charities, foundations, and most tax-exempt organizations must have an EIN.

 Trusts and Estates

Many trusts—especially those that generate income—need an EIN.
Estates handling a deceased person’s assets usually require one as well.

2. Individuals Who Need an EIN

 Sole Proprietors Who Have Employees

A sole proprietor without employees can use their SSN.
With employees → EIN required.

 Sole Proprietors Who Want Separation From SSN

Many individuals get an EIN voluntarily to protect privacy or because banks require it.

 Independent Contractors/Freelancers (in certain cases)

You don’t always need an EIN, but you do if:

• You hire subcontractors

• A client requires an EIN to issue 1099s

• You operate as an LLC rather than as an individual

3. Special Cases That Require an EIN

 Retirement Plan Administrators

If you administer a Keogh plan, you must have an EIN.

 Certain Real Estate Investors

You need an EIN if:

• You run rentals through an LLC

• You have employees (e.g., maintenance staff)

• You operate as a partnership or corporation

 Estates & Executors

Handling income generated from an estate requires an EIN.

 Farmers (as a legal business entity)

Farming operations structured as LLCs, partnerships, or corporations need an EIN.

 Churches and Religious Organizations

Most religious organizations need an EIN even if they don’t file tax returns.

4. Organizations That Also Need an EIN

The IRS requires an EIN for:

• Homeowners associations (HOAs)

• Political organizations

• Social clubs (501(c)(7))

• Labor unions

• Cooperative associations

• Business trusts

5. When You Do Not Need an EIN

You do not need an EIN if you are:

• A sole proprietor with no employees, no Keogh plan, and no LLC

• A single-member LLC with no employees that elects to be taxed as a disregarded entity

• A hobbyist generating small non-business income

• An individual filing taxes using only an SSN or ITIN

Summary Table