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Your Employer Identification Number, EIN will be a nine digit-number that takes the form: 12-3456789. It is assigned to sole proprietors, corporations, partnerships, estates, trusts, and other entities for filing and reporting purposes. All partnerships, corporations, and trusts need an EIN Number, even if they have no employees. Sole proprietors generally need one only if they have employees, have a Keogh pension plan, or must pay certain federal excise taxes. Sole proprietors need to have an Employer Identification Number only if they have one or more employees, if they have a Keogh plan, or if they are required to file excise tax forms such as those for sales tax, alcohol or tobacco. Employer Identification Number - EIN and Previous OwnerIf you purchase an existing business for which an EIN is needed, use your own Employer Identification Number, EIN or get a new one--don't use the, EIN of the previous owner. If you operate more than one business as a sole proprietor, you should use the same EIN for each one; if you operate businesses in forms other than sole proprietorship, you'll need a separate Employer Identification Number, for each business entity. Household employers are also required to complete Form SS-4 to get an EIN, even if your only employees are household employees (such as domestic workers like maids, baby sitters, drivers, etc.) in your private home.
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