EIN - Employee Identification Number

The following information is for general use and educational purposes only and shall not be considered a recommendation or advice. Please seek legal or tax counsel for specific information. Apollo Strategic Advisor, LLC does not provide tax and/or legal advice.

• Once you select the link above you will be directed to the IRS website (Get an employer identification number)
  • Before providing any information please ensure you are on a legitimate and reliable website
• Once on the IRS website, you will see an option to 'Apply for an EIN'
• Once directed to the next page, you will see resources on EIN information
  
• You will see an option to 'Begin Application Now'
• From there you will follow the prompts and answer the questions truthfully
• Once the 6 step process is complete, you will receive a PDF with your assigned EIN
• The typical format is: XX-XXXXXXX

When is an EIN needed for a trust?

This all depends on the trust.... An EIN is not typically needed for revocable trusts (also known as living trusts) but is typically required for irrevocable trusts.

The most common trusts we work with are revocable trusts. This allows the grantor the ability to change, add, withdrawal, or retitle the trust assets. At this stage, an EIN is typically not needed.

Upon the grantors death, a revocable trust typically becomes irrevocable which means it is unable to be changed or adjusted. At that time an EIN is required as the trust is now treated as a separate entity instead of being connected to an individual. An EIN is often required to open a trust bank account, open/transfer investment accounts in the trust name or accounts that have the trust listed as the beneficiary, to file trust taxes (if applicable), and may be needed to transfer property such as a home. 

In short, an EIN is often needed when assets are being transferred using a trust after death and is typically applied for by the Successor Trustee.

An EIN may also be needed when forming a business.

Many business owners wish to treat their businesses as separate entities and therefore file taxes under an EIN (as opposed to their social security number). Specific business structures, certain business activities, and the desires of the business owner could prompt the requirement of an EIN.

In general, if your business structure is an S Corp, C Corp, Multi-Member LLC, or you plan to hire employees, an EIN could be required. Other business entities such as Sole Proprietorships and Single-Member LLCs, without employees, may not require an EIN, however one may be beneficial. 

Generating an EIN and running your business as a separate entity may offer legal protections against your personal assets. Other requirements for these protections may include; opening a separate business bank account, establishing an operating agreement, and keeping annual minutes.

We commonly see EIN requirements with individuals that have rental property, own a business or partnership interest, or are an independent contractor.