Does a New York sole proprietor need an EIN?
Not necessarily. With no employees you may use your Social Security number for federal filings. You need a free IRS EIN if you hire employees, file employment or certain excise returns, or open a qualified retirement plan. Banks commonly ask for one too.
Quick facts
- Formation filing
- None — no state paperwork creates a sole proprietorship
- Trade name
- Assumed-name business certificate filed with the county clerk (GBL § 130)
- Sales tax
- Certificate of Authority required before making taxable sales
- EIN
- Optional unless you hire employees; free from the IRS
- Federal tax
- Schedule C with Form 1040; Schedule SE at $400+ net earnings
- State tax
- New York personal income tax; New York City residents add city tax
The same question in every other state
This requirement is set at state level, so the answer changes when you cross a state line. Below is how 25 other states answer the same question, each linked to the page that cites the agency it came from. The full breakdown is on How to Form an LLC.
| State | Answer |
|---|---|
| Arkansas | Not always. A sole proprietor with no employees can use a Social Security number. |
| Georgia | Only if you hire employees or file certain excise or pension returns. Otherwise you can use your Social Security number, though many owners get a free EIN to open a bank account and protect their SSN. |
| Hawaii | A sole proprietor with no employees can use a Social Security number. You must obtain a free EIN from the IRS if you hire employees, file certain excise or pension returns, or a bank requires one for a business account. |
| Illinois | Not unless you have employees or owe certain excise taxes; you may use your Social Security number. Many sole proprietors still get the free IRS EIN to open a business bank account and avoid sharing their SSN. |
| Indiana | Not always. A sole proprietor with no employees can use a Social Security number. |
| Kansas | Not always. A sole proprietor with no employees may use a Social Security number on federal filings. |
| Maryland | Not always. You can use your Social Security number if you have no employees, but you must get a free EIN if you hire employees or file certain taxes. |
| Minnesota | Only if the proprietorship has employees, files certain excise returns, or maintains a qualified retirement plan. Otherwise the owner may use a Social Security number. |
| Missouri | Not usually. A sole proprietor with no employees and no excise tax obligations can use a Social Security number. |
| Montana | Not always. A sole proprietor with no employees can generally use a Social Security number for federal tax purposes. |
| Nevada | Not always. A sole proprietor with no employees can use their Social Security number, but must get a free EIN to hire employees or file certain excise or pension returns. |
| New Hampshire | Not usually. A sole proprietor with no employees can use a Social Security number. |
| New Jersey | You need a federal EIN if you have employees or file certain excise or pension returns. A sole proprietor with no employees can often use a Social Security number, but many get a free EIN from the IRS to open a bank account and avoid sharing their SSN. |
| New Mexico | Only if you hire employees or file certain excise or pension returns. Otherwise you can use your Social Security number, though many owners get a free EIN to open a bank account and protect their SSN. |
| North Carolina | Only if the business has employees, files certain excise returns, or maintains a qualified retirement plan. Otherwise the owner may use a Social Security number. |
| Ohio | Not always. A sole proprietor with no employees can use their Social Security number. |
| Pennsylvania | A sole proprietor with no employees can use a Social Security number, but an EIN is required to hire employees or file certain excise tax returns and is often needed to open a business bank account. The EIN is issued free by the IRS using Form SS-4. |
| South Carolina | Not usually. A sole proprietor with no employees can use a Social Security number. |
| Utah | Not unless you have employees, file employment or excise tax returns, or set up certain retirement plans. Otherwise the owner's Social Security number can serve as the tax identifier. |
| Vermont | Not always. A sole proprietor with no employees may use a Social Security number, but an EIN is required once you hire, and many banks and clients prefer it because it keeps your SSN off paperwork. |
| Virginia | Not always. Without employees you may use your Social Security number for federal filings. |
| Washington | Not usually. A sole proprietor with no employees can use a Social Security number. |
| West Virginia | Not always. With no employees you may use your Social Security number on federal filings. |
| Wisconsin | Not always. A sole proprietor with no employees can generally use a Social Security number for federal tax purposes. |
| Wyoming | Not usually. A sole proprietor with no employees can use a Social Security number. |
Full context for New York
This page answers one question. The complete New York guide -- covering the surrounding requirements, the forms, the agency, and what happens if you get it wrong -- is at Sole Proprietorship in New York (2026).
Sources
- https://dos.ny.gov/
- https://www.tax.ny.gov/bus/st/register.htm
- https://www.nysenate.gov/legislation/laws/GBS/130
- https://www.irs.gov/businesses/small-businesses-self-employed/sole-proprietorships
- https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws and fees change; verify current requirements with the relevant government agency before acting.