Does a small company need a tax ID number?
A sole proprietor who does not have any employees and who does not file any excise or pension plan tax returns is the only business person who does not need an employer identification number. In this instance, the sole proprietor uses his or her social security number as the taxpayer identification number. References: • Publication 334, Tax Guide for Small Business • Publication 1635 (PDF), Understanding Your EIN • Tax Information for Business.
A sole proprietor who does not have any employees and who does not file any excise or pension plan tax returns is the only business person who does not need an employer identification number. In this instance, the sole proprietor uses his or her social security number as the taxpayer identification number. References: • Publication 334, Tax Guide for Small Business • Publication 1635 (PDF), Understanding Your EIN Source: www.irs.
