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EIN assigned by IRS to sole proprietorship.

Hi, 

I just got an letter from IRS, in which it informs it assigns to my sole proprietorship an EIN because it is required by Law.  As far as I know EIN is required only if I have employees which I do not, it is only me working in the business. Does anyone know why I was assigned an EIN, and if that is a common practice. I filed Schedule C via turbotax. On it there is only my ssn and the ein is missing. 

Thank you. 

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1 Reply
ColeenD3
Expert Alumni

EIN assigned by IRS to sole proprietorship.

No. Per the IRS:

 

A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes. However, if a single-member LLC, whose taxable income and loss will be reported by the single member owner needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN.

 

EIN

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