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Employer Identification Number Overview

MyCorporation files for businesses that need an employer identification number using IRS Tax Form SS-4.

An employer identification number is a federal identification number issued by the IRS to identify a business entity. It is also known as a Federal Tax ID number. Legally, you are required to identify your business with one of two numbers: either your social security number or an employer identification number.

Generally you need an employer identification number when your business:
  • Is new
  • Hires, or will hire, employees
  • Is an LLC or Corporation
  • Opens a bank account
  • Changes type of organization

If you are a sole proprietor, your social security number can be used on all of your government forms and other official documents, but most small business advisors recommend that you apply for an employer identification number and use that number instead.

Furthermore, banks require an employer identification number in order to open a business bank account.