Teacher Insights: Does Everybody Need a Federal Tax ID?

As a business startup, you may be concerned about federal tax obligations and legal requirements to ensure you’re squared away with the IRS. When setting up, however, you may ask yourself whether or not you need a federal tax ID number to formally establish your business.The good news is that technically, you already have a federal tax ID number.


In layman’s terms a federal tax ID number is no different from your personal Social Security Number (SSN), but when it comes to starting a business the types of federal tax ID numbers can be broken down into SSNs or EINs, also known as Employer ID Numbers.

So Do You Need an Employer ID Number? When asking yourself if you need to apply for an EIN, you can consider the following questions:

● Does your company hire and pay employees?

● Are you registered as an S-Corp, C-Corp, or partnership?

● Are you managing an entity such as a trust or non-profit?

● Do you file excise tax, tobacco tax, firearms tax, or alcohol tax?

● Does your business have a Koegh plan?

● Is your business part of a farmer’s cooperative?

If you answered yes to any of these questions, you may need to file for an EIN. Many don’t know that trusts are managed as separate legal entities, and require a trust tax ID number the same as any business. This also applies to numerous other situations.

Get Help Filing for an EIN

If you’re uncertain if you need an EIN or if you just need help getting started, get in touch with skilled tax services professionals who can make it easy to get started with in-depth knowledge of your business type and filing requirements.

Contact IRS EIN TaxID Filing Service to learn more about business requirements, federal tax identification numbers, and the legal expectations placed on you as a business owner.

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