QUESTION

Is it important for a online business to obtain a EIN ?

Asked on Apr 29th, 2020 on Business Law - Connecticut
More details to this question:
I have a online business i am starting and i want to know if i need a EIN , or will a LLC cover everything i need ?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
An EIN, Employer Identificatin Number, is the taxpayer identificaton by which your business will be known to the IRS, just like an individual uses a Social Security Number.  Businesses may need EIN's for many reasons, but certianly the business needs an EIN if it has employees and/or if it is taxed as a corporation or partnership.  If you are going to operate your business as a sole proprietorship and have no other employees,  you may not need an EIN.  Whether you should structure your business as a corporation, an LLC, or some other structure is a different issue.
Answered on Apr 30th, 2020 at 7:18 AM

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