Do I have to get an EIN number?

[Patrice]

It depends.  

According to the IRS, your business must have an EIN if any of these criteria apply:

• You have employees;
• Your business operates as a corporation or a partnership;
• You withhold taxes on income other than wages paid to a nonresident alien;
• You have a Keogh Plan; or
• You’re involved with certain organizations listed on the IRS website.

Beyond filing taxes, you may also need an EIN to:

• Open a bank account in the name of your business;
• Apply for a credit card in the name of your business;
• Apply for business permits; or
• Furnish independent contractors a Form 1099 [PDF]. (Check with your accountant or tax professional.)

Another reason you may want an EIN: privacy. For example, if you are a contractor who works with a large number of clients, disclosing your Social Security Number may expose you to personal identity theft. Instead, apply for and provide an EIN. This won’t eliminate your chances of falling victim to identity theft, of course, but it will likely keep the thief from accessing your personal