Do I Need A Federal ID Number?

As a sole proprietor, you can use your Social Security number as your Federal ID number for most purposes.

However, if you EITHER...

  1. Will pay employees to work in your business, or
  2. Will be subject to Federal excise taxes due to the nature of your business, you need to submit a Form SS-4 and obtain an Employer Identification Number which will be used for those purposes.

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