10/03/2026
Short answer, no, not always. As a sole proprietor you can technically use your social security number for your business instead of an EIN.
But here's why I got one anyway. Every time you hand out your social security number, you're putting a very sensitive piece of you out into the world. An EIN lets you keep your business paperwork separate from your personal identity, and it's free straight from the IRS.
Deep dive worth knowing, an EIN actually becomes required, not just recommended, the moment you hire your first employee, open certain business bank accounts, or change your business structure to an LLC or corporation down the road. If any of that is on your horizon, get it now instead of scrambling later.
You can apply directly and for free at irs.gov, it takes about ten minutes.
Stay crafty.