Do I need an Employer Identification Number?
Whether or not you need an Employer Identification Number depends on a few factors. Not everyone does need an Employer Identification Number. In my opinion, I think it's always better if you are running a business to have an Employer identification number than to not have one. There's a few reasons for that, even though if I'm a sole proprietor and I'm running a small little business out of my home, I don't care if it's a doing web design or it's baking pretzels, I don't necessarily need a separate Employer Identification Number; I can do everything under my personal bank account, under my own name, and under my own Social Security number. However, if you have any aspirations of growing your business or you like to keep things separate and not commingle your funds, I think it's good to have a separate Employer Identification Number because you can open up a separate bank account for the business and it allows you to keep separate records and I think doing that legitimizes the business, and so for most people I recommend that if you're serious about your business you should probably get an Employer Identification Number.
