How to Apply for an FEIN (Federal EIN) Number | Online FEIN Application
There are many reasons why you might want to apply for an FEIN (Federal EIN) Number. When starting a business, you will need to use this number to hire employees, open bank accounts or pay your taxes. In fact, if you don`t have this number, you may not be able to submit important documentation and payments. Luckily, it`s possible to apply for an FEIN Number completely online.
- Prepare Business Owner Information
- Apply for an FEIN (Federal EIN) Number Online
- Apply for an FEIN (Federal EIN) Number by Phone, Mail or Fax
- What is the Difference Between an FEIN Number and an EIN?
- Why Do I Need to Obtain an IRS FEIN Number?
- How Do I Get an FEIN Number?
An FEIN (Federal EIN) Number is needed for many types of businesses, from sole proprietorships to partnerships. The first step to applying for an FEIN Number is to collect information about the business owner or owners, as well as information about the company's basic structure. As a business owner, you'll need to provide:
- Your own Tax ID Number, (aka, your SSN) which will become distinct from your FEIN Number.
- Your current mailing address and full legal name.
- Details about your business entity, such as an LLC or an S-Corporation.
An FEIN Number obtainment service can help you collect and verify this information to ensure that the information is submitted correctly the first time.
The fastest way to apply for an FEIN Number is to complete the process online. By applying online, you can receive your Federal EIN Number within an hour rather than having to wait days or weeks for it to be returned. Other processes require a significant amount of wait time, during which you may not be able to hire employees, open bank accounts or perform other critical actions.
While applying for a Federal EIN Number, you can complete the application using multiple methods: online, phone, mail or fax. These methods will differ regarding how long the process will take and how involved the process is.
Applying via mail means that you'll send in your application via the postal service and it will take anywhere from four to six weeks to return your application. If any of your information is incorrect, you'll need to start the process over.
Applying via phone means you'll need to call in during business hours and you will need to work directly with a representative. At the end of the phone call, you'll receive your FEIN Number, but it does mean you'll need to spend a lot of time on the phone during the work week. If your information is incorrect, you'll have to call back. Applying via fax means that you'll fax in an application and it will be returned within a few business days. If there is an error with your application, you may not know until you inquire as fax machines can operate intermittently and may not return an error if a fax is not received. Having many options to acquire an FEIN Number makes it much easier to do so, but online remains the easiest method.
There is no difference between an FEIN Number or an EIN. These are just different ways to refer to the same thing. A Federal Employer ID Number may also be referred to as an Employer ID Number, Federal Tax ID Number or just a Tax ID Number. However, a “Tax ID Number” may also refer to either a Federal Tax ID Number or a State Tax ID Number, and Federal ID Numbers and State ID Numbers are different, for obvious reasons.
An FEIN (or EIN) is used when hiring employees, paying taxes, opening bank accounts and performing other business-related actions. Often, the same number will be referred to as a Federal Employer ID Number when hiring or paying payroll taxes and as a Federal Tax ID Number when paying other taxes.
An IRS FEIN Number is used for a number of business-related tasks, not just employment. A FEIN Number is how businesses, government entities and financial institutions are able to distinguish between different businesses. An FEIN Number is consequently used for:
- Opening bank accounts and getting business loans. A business bank account will use a FEIN Number to identify your business and to establish your reputation with banking institutions. Business credit scores are attached to a company's FEIN Number.
- Hiring employees and paying them. A business needs an FEIN in order to hire employees, fill out employment paperwork and pay payroll taxes. This is why even a sole proprietorship may need an FEIN.
- Paying federal taxes. A business will need a state tax ID to pay state taxes, but a FEIN Number is necessary for paying federal taxes. Otherwise, a business may run into penalties and fines for paying taxes late.
- Getting permits and licenses. State and federal permits and licenses will use an IRS FEIN Number to identify the business; without them, these types of permits and licenses cannot be issued.
All of this necessitates that a business has a FEIN (Federal EIN) Number before a company is able to perform many of its operations.
An FEIN Number can be acquired through the internet with the use of an online tax ID service. A tax ID service will be able to create an application on the company's behalf, which makes it possible to acquire an FEIN Number in under an hour.
Once you have your FEIN Number, you'll immediately be able to use it on forms and applications. This FEIN Number will be used to identify your business with the government, banking institutions and other businesses. If you ever lose your FEIN Number, you can request it again or find it on your old documents and paperwork.