This article provides general educational information, not legal or tax advice. Requirements can vary by individual circumstances, an artist with a specific question should consult a qualified accountant or attorney.
An EIN, Employer Identification Number, sounds like something only a company with employees needs, which leads many independent artists to assume it doesn’t apply to them at all. The real answer is more nuanced: an EIN isn’t required for a sole proprietor with no employees, but there are genuine, practical reasons an artist might want one anyway. This piece covers what an EIN actually is, when it’s required versus optional, and how to decide whether getting one makes sense.
In this article:
- What an EIN Actually Is
- When an EIN Is Actually Required
- When a Sole Proprietor Can Skip It Entirely
- Reasons to Get an EIN Even When It’s Not Required
- Quick Reference: When to Use an EIN vs. a Social Security Number
- How an EIN Is Actually Obtained
- Why Some Banks Require an EIN for a Business Account
- A Note for Artists Outside the United States
- Common Misconceptions About EINs
- Deciding Whether to Get One
- Best For
- Frequently Asked Questions
What an EIN Actually Is
Understanding what an EIN actually is clears up most of the confusion around whether one is needed.
A Federal Tax ID Number, Separate From a Social Security Number
An EIN is a nine-digit federal tax identification number issued by the IRS, functionally similar to a Social Security number but assigned to a business rather than an individual. It’s used to identify a business for tax filing and reporting purposes.
Getting an EIN Is a Separate Step From Forming an LLC
An EIN and an LLC are two different things entirely, an artist can form an LLC and still need to separately apply for an EIN, and conversely, a sole proprietor can get an EIN without ever forming an LLC at all. As covered in the full LLC breakdown, forming an LLC typically does require getting an EIN, but getting an EIN by itself doesn’t require forming an LLC.
When an EIN Is Actually Required
A handful of specific situations make an EIN genuinely mandatory, not just convenient.
- Hiring any employees, even one, generally requires an EIN regardless of business structure.
- Forming an LLC or corporation typically requires an EIN as part of the formation process.
- Opening certain business bank accounts, some banks require an EIN to open an account in a business name rather than an individual’s own name.
- Filing certain excise or specific business tax forms, though this applies to relatively few independent artists in practice.
When a Sole Proprietor Can Skip It Entirely
For most new artists, this is the more relevant scenario than the mandatory cases above.
A sole proprietor with no employees can generally use their own Social Security number for tax filing and marketplace purposes, an EIN isn’t required just to start selling art online as an individual. This is the default, no-paperwork path covered in more depth in the LLC article, and it remains fully legal without ever obtaining an EIN.
Reasons to Get an EIN Even When It’s Not Required
Beyond the mandatory cases above, there are genuine, practical reasons an artist might choose one voluntarily.
Avoiding Sharing a Social Security Number With Marketplaces or Contacts
Many sole proprietors get an EIN specifically to avoid sharing their personal Social Security number with a marketplace, a client, or a business contact, using the EIN in its place on tax forms and business paperwork instead. This is a genuine privacy benefit, independent of any legal requirement.
A More Professional-Looking Business Identity
An EIN can also support a more distinct business identity, separate business bank accounts and formal invoices tied to an EIN rather than a personal Social Security number, even without forming an LLC.
Quick Reference: When to Use an EIN vs. a Social Security Number
Laid out plainly, the decision usually comes down to one of a few common situations.
| Situation | Typically Uses |
|---|---|
| Sole proprietor, no employees, no EIN obtained | Personal Social Security number |
| Sole proprietor who obtained an EIN voluntarily | EIN, though SSN may still apply in some contexts |
| LLC or corporation | EIN, generally required |
| Any business with employees | EIN, required |
How an EIN Is Actually Obtained
The process itself is simpler, and cheaper, than many artists assume.
An EIN is requested directly from the IRS, and the standard online application is free, there’s no need to pay a third-party service to obtain one, though some paid services do offer to file the application on an artist’s behalf for a fee. Confirming the correct, official application channel before paying anyone for this service is worth doing, since the process itself doesn’t require a fee when done directly.
Why Some Banks Require an EIN for a Business Account
This is often where an artist first encounters the EIN question in practice, well before any tax filing consideration comes up.
Even a sole proprietor who doesn’t legally need an EIN may find that opening a bank account specifically in a business name, rather than their own personal name, requires one anyway. This varies by bank, some allow a sole proprietor to open a “doing business as” account under a personal SSN, others require an EIN regardless of business structure. Checking directly with a specific bank before assuming either way avoids a wasted trip or application.
A Note for Artists Outside the United States
The EIN question doesn’t apply the same way to every seller on a global marketplace.
An EIN is specifically a U.S. federal tax identification number, an artist based outside the U.S. selling through a U.S.-based marketplace may encounter different tax reporting requirements entirely, sometimes involving a different IRS form (like a W-8BEN) rather than an EIN application. This is worth researching specifically for an artist’s own country of residence rather than assuming the EIN process applies universally.
Common Misconceptions About EINs
- “I need an EIN before I can sell online.” False, a sole proprietor with no employees can use their Social Security number instead.
- “Getting an EIN means I’ve formed a business entity.” False, an EIN is a tax ID number, it doesn’t itself create an LLC or any other legal entity.
- “An EIN application costs money through official channels.” False, applying directly through the IRS is free, paid services only charge for filing it on your behalf.
- “Every business needs an EIN regardless of structure.” False, a sole proprietor with no employees is a common, fully legal exception.
Deciding Whether to Get One
Pulling everything above together into a practical recommendation.
For a new, low-volume seller, skipping the EIN and using a Social Security number is a reasonable, fully legal starting point. Once revenue grows, privacy concerns around sharing an SSN become more pressing, or an LLC gets formed, getting an EIN becomes worth the small amount of effort involved, particularly since the application itself is free and generally quick to complete.
Best For
Skipping an EIN suits a new or low-volume sole proprietor who is comfortable using their Social Security number and isn’t concerned about sharing it with the platforms or contacts they work with. Getting one suits an artist who wants to avoid sharing an SSN broadly, is forming an LLC, or is building a more formal, separate business identity even without a formal entity. Since applying directly costs nothing, there’s little downside to getting one early even if the need isn’t immediate yet.
Frequently Asked Questions
Does a sole proprietor need an EIN to sell art online?
No. A sole proprietor with no employees can generally use their Social Security number instead, an EIN isn’t required just to start selling.
Does getting an EIN mean I’ve formed an LLC?
No. An EIN is a separate federal tax ID number, it doesn’t itself create an LLC or any other legal business entity.
Is there a fee to apply for an EIN?
Not through the official IRS application channel, it’s free. Some third-party services charge a fee to file the application on your behalf, but this isn’t required.
Why would a sole proprietor get an EIN if it’s not required?
Commonly to avoid sharing a personal Social Security number with marketplaces or business contacts, and to support a more distinct, professional business identity.
Does forming an LLC require an EIN?
Generally yes, forming an LLC typically requires obtaining a separate EIN as part of the formation process.
Can a sole proprietor get an EIN without forming an LLC?
Yes. An EIN can be obtained independently of any LLC formation, a sole proprietor can get one purely to avoid using their Social Security number.
Does opening a business bank account always require an EIN?
Not always, some banks allow a sole proprietor to open a “doing business as” account under a personal SSN, others require an EIN regardless of structure, worth confirming directly with a specific bank.
Does an EIN apply to artists outside the United States?
An EIN is specifically a U.S. federal tax ID, an artist based elsewhere may face different requirements entirely, such as a different IRS form, worth researching for their own country of residence.
For the related question of whether an LLC itself is necessary, see the full plain-English LLC guide. And for how sales tax and 1099-K reporting work separately from business structure, that same article covers both.
Ready to start selling regardless of which business structure you choose? Sign up to sell on Immibrand, it’s free to start.
