Does My Business Need an Employer Identification Number (EIN)?

Does My Business Need an Employer Identification Number (EIN)?

There are a few questions that you can ask yourself right away regarding your business that can indicate to you immediately whether or not it is time to apply for an Employer Identification Number (EIN) from the IRS.

Does your business have employees or plan on hiring employees? It is important to note that even if your business is using contractors to get work done, they may be more accurately characterized as an employee under the law, which will require an EIN to be established and additional changes regarding such workers to be made.

Does your business operate as a partnership or a corporation? This includes all types of partnerships, corporations, and will likely include your LLC, unless it is a single-member LLC with no employees (and does not plan on hiring any) that does not fall under any other specific conditions.

Is your business involved with any of the following types of organizations? Non-Profits, Trusts (except certain grantor-owned revocable trusts), Estates, Plan Administrators, Individual Retirement Accounts, Exempt Organization Business Income Tax Returns, Real Estate Mortgage Investment Conduits, or Farmers’ Cooperatives.

Does your business withhold taxes on income, besides wages, that are paid to a non-resident alien?

Does your business file any of the following tax returns: Employment, Excise, or Alcohol, Tobacco and Firearm?

Does your business have a Keogh plan? Keogh plans are a particular kind of retirement plan that may require an EIN.

If you answered yes to any of the above questions, are unsure about your answer, or have other questions of your own, do not hesitate to reach out to the Law Office of E.C. Lewis, PC, home of your Denver Business Lawyer, Elizabeth Lewis at 720-258-6647 or email her at