Employer Identification Number for a Partnership
Tax Reporting Entity
Although a partnership is not a tax-paying entity, it is a tax-reporting entity, and therefore, must have its own Employer Identification Number (EIN). A partnership reports partnership income, expenses, deductions, and credits annually on Form 1065 where it enters its EIN.
Although the word "Employer" is included in tthe name of this tax ID, a business does not actually have to have employees to have an EIN. EINs are used by sole proprietors who have no employees, corporations, partnerships, nonprofit associations, trusts, estates of decedents, and government agencies.
Caution: The IRS cautions that an "EIN is for use in connection with your business activity only. Do not use it in place of your social security number."
For Freelancers and independent Contractors
- Organize your financial data into one central accounting system on the cloud
- Software kept up to date.
- Your data kept secure
- Anytime, anywhere data access.
- Pay your quarterly estimated taxes online.
- Export Schedule C to TurboTax at year-end for faster filing.
- Save up to 50% off QuickBooks Self-Employed. Track every deduction! Start your free trial now!
Have an accounting or bookkeeping question? Email it to me.
- Return to the Tax Basics for Startups Table of Contents to find related links.