Where Can I Find a Sole Proprietorship Tax ID Application?

Is an EIN for sole proprietorship a requirement? Not necessarily, but it can be beneficial to have one. If you have a sole proprietorship that doesn’t hire any individuals, you can use your own social security number rather than having to get a tax ID, also known as an Employer Identification Number. But if you do hire other individuals, you’re going to need a tax ID. You may also need one if you’re going to be paying some form of excise tax, such as for alcohol or tobacco.

A tax ID can be acquired online, through email, through fax, or through paper mail. You can get a form and either send it in digitally or as a hard copy. The easiest way is to go through a third-party tax ID service. They will validate your information for you, submit it, and let you know when you’ve received an ID. Often, you can get a tax ID within an hour, if you file online. It may take a few weeks if you attempt to do it through the mail.

Written by Maurice Mallory