One of the steps in starting a business is
registering for a tax ID number, known as an employer identification number or
EIN. Although it is common practice for businesses to utilize this number, it
is not always necessary. There are situations in which an individual might
choose not to apply for an EIN.
Sole
Proprietors and LLCs
The only two business entities that have
the option to not get an EIN are sole proprietors and LLCs. Rather than using
an EIN, business owners can use their personal social security number instead.
The criteria in which a business would not need an EIN include: