What is a FEIN? A FEIN is a federal employer identification number is used for the internal revenue service to identify a business for tax purposes. It is a nine-digit number, much like a social security number, that the IRS uses to identify different entities and is formatted like 12-3456789. All business entities are required to have a tax identification number to identify the taxpayer. To apply for a tax identification number, you can visit the website IRS-EIN-Tax-ID, to fill out paperwork from the Internal Revenue Services known as a SS-4.
Different Entities
To know if you should apply for a FEIN, you should first decide what entity you are. The different entities that require a tax identification number include:
- Sole Proprietor/Individual
- Limited Liability Company
- Trust
- Estate (Deceased Individual)
- Non-Profit Organizations
- Corporation and S-Corporation
- Partnership
- Personal Service Corporation
- Church Controlled Organization
You also need to obtain an EIN number if you:
- People work for you
- Your business operates as a partnership or firm
- You file any tax returns under excise, tobacco, firearms, alcohol, or employment
- Any of your taxes are withheld on revenue, besides pay, paid to a foreign alien
- You operate your business under a Keogh Plan
- You have any affiliation with a trust, IRA, real estate mortgage, farmers’ cooperative, or a plan administrator program
If any of the following applies to you then it is time to apply for your tax identification number. IRS-EIN-Tax-ID has broken the filling process down into three simple steps.
- Select entity
- Enter information
- Review and submit
They have government agents available for any questions. They also provide a processing and filling service to make the process easier. If submitted during business hours, you will receive your EIN that same day via email, typically within an hour.