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However, it could also refer to a state tax ID number. We'll break down both and help Joe and Amy decide which numbers they need. Amy, however, is the sole proprietor of her business, so she is not required to get an EIN number.
Had either of them operated a business that was required to file employment, excise or ABT alcohol, tobacco and firearms tax returns, or if their business involved certain types of organizations like trusts, estates, nonprofits , then they would have been required to get an EIN number. The Internal Revenue Service has a helpful online quiz that business owners can take to determine if an EIN is required for their business.
If you're in the business of selling things online, chances are you need to get a state tax ID number also called a sales tax permit, reseller certificate or similar. The referral center is staffed Monday-Friday 8am-5pm.
EIN Lookup: How to Find Your Business Tax ID Number
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