If your business needs to apply for a Federal Employer Identification Number (FEIN), there are a few methods you can use. An IRS FEIN is a unique identification number assigned to a business. It is used for many purposes, ranging from hiring employees to opening business bank accounts. The most expedient and convenient method of applying for an IRS FEIN is through an online service.
Steps to getting an IRS FEIN Application Completed
- Prepare Business Owner Information
- Apply for a Tax ID Number Online
- Apply for a Tax ID Number by Phone, Mail or Fax
- Why Do I Need to Obtain an IRS FEIN Number?
- How Do I Get an FEIN Number?
- What is the Difference Between an FEIN Number and an EIN?
First, to determine whether you need a FEIN Number, you will need to collect information about the business and its owner. If the business is a sole proprietorship with no employees, it’s possible that you don’t need an IRS FEIN. However, this is fairly rare, and it’s still advisable to have a FEIN Number for a variety of reasons.
In order to apply for your FEIN Number, you should have:
- Information about the company’s structure.
- A list of the company’s owners or partners, as well as the responsible party.
- The business owner’s SSN (or ITIN), date of birth and mailing address.
Once you have the information above available, you can begin the process of applying for an IRS Federal EIN.
Applying for a FEIN Number online is easy. First, collect information regarding both the business and the business owner. Once this information has been collected, you can submit it directly to an online FEIN Number service.
The online FEIN Number service will send in an application. Within an hour, this application will be processed and a FEIN Number will be returned to you. If there are any problems processing your application, the FEIN Number service will be able to help.
While it’s usually desirable to apply for a Federal EIN online, there are other ways. You can submit your application by calling and speaking to a representative on the phone, mailing an application or faxing an application. And while these processes are fairly reliable, they tend to take much longer than an online application.
If you choose to submit your application via phone, call into an EIN service during business hours, give your business information, and wait until your EIN Number has been assigned. This needs to take place during business hours, which may not necessarily be in your time zone.
If you choose to submit your application via mail, print out a paper application and mail it to the referenced address. In four to six weeks, you will receive your EIN Number in the mail. If you do not receive it, then it’s possible that your application wasn’t processed correctly.
Finally, if you want to submit your application via fax, you can fill out a paper application and then fax it directly into an EIN service. Within a few days, you should receive your EIN Number in the fax, though you may not know if the fax has been rejected or hasn’t gone through.
An IRS FEIN is a necessity if you’re interested in hiring employees. You need an IRS FEIN if you want to pay payroll taxes, open retirement accounts for employees, pay workers’ compensation insurance, fill out hiring forms and otherwise legally employ individuals. However, that’s not all. An IRS FEIN isn’t just an employer identification number; it’s also the number that identifies your business to the IRS.
Your business will need an IRS FEIN in order to open up business bank accounts, credit cards, loans and lines of credit. Banking institutions frequently use a FEIN as an identifier, just as they use an SSN for individuals. Business credit scores follow their FEIN, which means it can be difficult to establish credit with other businesses without a FEIN. Purchasing goods wholesale also often requires a Tax ID.
In addition to this, a business (unless it is a sole proprietorship) will often need an IRS FEIN to pay its federal taxes. For state taxes, it will instead need a State Tax ID.
Once you have applied for a FEIN Number, your application will be processed according to the way that you submitted your application. The method you used will determine how you receive the FEIN, though you may request a paper copy of your FEIN using other methods for additional documentation.
- Online. If you applied for your IRS FEIN through an online service, you will get your FEIN returned to you online within an hour.
- Phone. If you applied for your IRS FEIN through a phone service, you will receive your FEIN at the end of the phone call. This may take a few hours, depending on call volume.
- Fax. If you applied for your IRS FEIN through a fax service, you will receive your FEIN within a few business days. If you don’t, your application may not have been received.
- Mail. If you applied for your IRS FEIN through the mail, you will receive your FEIN within six weeks. If there was an error with your application, you’ll need to send it in again.
Once you receive your FEIN Number, you can begin to use it; it doesn’t matter how it was received.
A FEIN Number is a “Federal Employer Identification Number.” It’s the same as an EIN (“Employer Identification Number”). A FEIN Number may also be called a Federal Tax Identification Number or just a Tax Identification Number, though it shouldn’t be confused with a State Tax Identification Number. A FEIN is a nine-digit number that identifies a business to the IRS. When used on employer forms, it’s usually called the FEIN. When used on tax-related forms, it’s usually called the FTIN.
Through an online FEIN service, you can acquire an IRS FEIN within an hour. Once you’ve acquired your IRS FEIN, you can immediately begin using it on forms and applications. If you ever lose your FEIN, you can either look it up through the IRS or reference past documents.