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101EINReject.US

/sole-prop-vs-llc-ein

Do you even need an EIN?

Sole proprietors usually don't. LLCs almost always do. Disambiguating EIN, ITIN, and SSN saves a 15-minute round trip.
citeIRS Pub 1635

When SSN is enough

Sole prop, no employees, no special elections

If you're a sole proprietor with no employees and no excise/employment tax obligations, your SSN is your business taxpayer ID. You only need an EIN if your bank requires one or you elect S-corp status.

When EIN is required

LLC, employees, certain elections

Single-member LLCs are disregarded entities for federal income tax but generally need an EIN for banking and state employer registration. Multi-member LLCs always need one. Anyone with W-2 employees needs one.

Expectation-setting
Only the IRS issues EINs. No service — formation operator, attorney, CPA, or EIN-resolution shop — issues EINs. What they sell is the labor of refiling SS-4 on your behalf, not a different outcome.
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