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 ?
1 ANSWER
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