Follow the three steps for Applying Your Employer Identification Number (FEIN)
Complete our Online Form
Fill your particulars and we would take care of the rest.t.
We would start the process
Once the form is completed, we would initiate the process with the Internal Revenue Service.e.
Receive your EIN Number
Get your EIN. Take the printout of this number or jot it down on the paper.
Employer Identification Number (EIN)
A Federal Tax ID or the Employer Identification Number is a number that the IRS assigns to your business. It is a distinct nine-digit number, in the format xx-xxxxxxx. It helps you file tax returns for your business and is essentially needed to open a bank account that functions under your business’ name. It also helps you pay your employees legitimately, and account for their salaries and wages.
Hence, apply for an EIN Online.
Benefits of EIN?
Apply for a Tax ID online and get enjoy its benefits in a number of ways:
Right after you incorporate, your business becomes a separate legal entity and distinct from the participating owners. There are various instances when the business has to file for an EIN, which include opening a bank account, filing for bankruptcy, hiring employees, changing the organization type.
Prevents identity theft
Using your social security number (SSN) on tax documents makes your business prone to identity thefts. On the other hand, an EIN is only used by the IRS for federal identification, which means they are less prone to identity thefts and would not put your personal information at risk of being leaked.
Establish banking history
Business owners who aim to create a banking history distinct from its personal finances need to file an EIN beforehand. Additionally, an EIN is also necessary for limiting the business’ liability in case the entrepreneur wishes to move beyond sole proprietorship.
Frequently Asked Questions
Do you need to get your EIN for your business?
Primarily, single-member LLCs and sole proprietors who don’t have employees; or pay excise taxes and do not have a separate legal entity for their business do not require to an EIN. Instead, they can use their Social Security numbers, for receiving taxes and payments from their customers. Even for these solo-entities, there are benefits of getting one:
- It reduces the odds of identity theft.
- It helps in maintaining your business’ official status as a legal identity at the federal level.
- Serves as Tax Id for your other corporate entity and LLCs.
- EIN will be further required in getting a business loan or credit card and for other business activities.
Does my LLC need an EIN?
A multi-member LLC requires an EIN, irrespective of the hiring of employees. On the other hand, a single member LLC may need an EIN to engage with banks and moneylenders.rs.
Why would a sole proprietorship need an EIN?
A sole proprietorship needs an EIN if it decides to hire employees or changes into a partnership.ership.
Do I need to incorporate before applying for an EIN?
When you start your new business, you may face the dilemma of what should come first, incorporation or get an EIN. There’s no need to worry. You can do both of them in either order. It is important to realize that the two tasks need immediate attention but can be done conversely.
Can I reuse the Federal Tax ID from my sole proprietorship?
A sole proprietorship requires a new EIN in the following cases::
- Proceedings for bankruptcy
- Inheriting or buying a previously existing business to operate as a sole-proprietorship.
Conversely, a sole proprietorship can reuse its previous EIN and doesn’t have to obtain a new one under the following conditions:
- Changing business name
- Operating multiple businesses at one time
- Adding, changing or updating locations for your business.
Do I need to file paperwork with my state?
Yes, you need to file the relevant paperwork with the IRS to obtain an EIN for your business. Fortunately, FastIncNow can prepare all the required paperwork, ensuring no costly errors to obtain an EIN for your business.
Who all may require an EIN?
An EIN is necessary for:
- Partnerships: An EIN is necessary for both limited and general partnerships.
- LLCs with single member- in many cases, the banks and moneylenders require an EIN to transact business with the company even when you are running a single member LLC. Further, when you employ more people to your business, an EIN becomes a necessity.
- LLCs comprising of multiple members: Irrespective of the hiring of employees, these types of LLCs need to have an EIN.
- Taxing an LLC as a Corporation: When LLCs elect an S-Corporation status by filing for S-Election, it needs to obtain an EIN.
- Altering the legal character of the company: If your company decides to hire employees in the next few months, it needs to get an EIN. Obtaining an EIN becomes necessary, regardless of whether your company is a sole proprietorship or an LLC.
- Business Bank Account: It is especially relevant to get an EIN for opening a business bank account.
- Some specific organizations: An EIN is necessary if your business entity falls under the following category:
- Real estate mortgage investment conduits
- Non-profit organizations
- Farmers’ cooperatives
- Plan administrators