Federal Employer Identification Number (FEIN): How to Get One

Many businesses – home based or stand alone – require a Federal Employee Identification Number (FEIN).  Typically a business with employees or with a structure other than a sole-proprietorship must have a FEIN.  The IRS provides a helpful link – http://www.irs.gov/businesses/small – to assist you in determining if a FEIN is necessary for your business.

Getting a FEIN is not difficult and Jeanette Mulvey has some helpful tips in her article below.  If a FEIN is not necessary, usually your social security number will suffice for tax purposes.  If you expect growth or plan on hiring employees, applying for a FEIN early in your startup phase may be a good idea.

Federal Employer Identification Number (FEIN): How to Get One

By Jeanette Mulvey

Before you can open a bank account, apply for a business license or file a tax return, you will be required to obtain a Federal Employee Identification Number (FEIN) for your business. Not every small business needs a FEIN, but many do. Those who do include:

– Any business with employees.
– Any business that operates as a corporation or a partnership.
– Any business that pays employment, alcohol, tobacco or firearms tax returns.

If you’re not sure if you need a FEIN, you can consult the Internal Revenue Service’s web site at http://www.irs.gov/businesses/small. According to Melvin Springer, a North Bellmore, N.Y.-based financial executive and SCORE advisor (Service Corps of Retired Executives), a good rule of thumb is that “if you record them on your personal tax return you are not required to have one, as you can use your social security number. If you intend to report them on a business tax return you will be required to have a FEIN.”

If you are required to have a Federal Employee Identification Number, there are several ways to apply.

By Phone: (800) 829-4933.

By fax or mail: You can find form SS-4 [SS-4 download as pdf] and located fax number and mailing addresses for your location on the IRS web site.

Online at the IRS web site. You can file the SS-4 online or participate in an “interview style” live chat that will ask you questions and issue you a FEIN if you require one.

Regardless of what method you choose, your number will not be active in the IRS system for two weeks.

While not everyone is required to get a FEIN, you may decide that it’s worth applying for one anyway. There is no charge and you never know when you may decide that it’s time to hire an employee or when your business circumstances might change and you will need one. It might be best to have already done the legwork rather than trying to do it on the fly.

Jeanette Mulvey is BusinessNewsDaily Managing Editor.

Source: http://www.businessnewsdaily.com/federal-employer-identification-number-criteria-0336/


8 Responses to Federal Employer Identification Number (FEIN): How to Get One

  1. Very timely as I just got one for myself. It was very easy to do. If only our taxation policies were as simple as this!

  2. business says:

    June 2009 …Applicable to the an Employer Identification Number or EIN also known as Federal Employer Identification Number or FEIN is the corporate equivalent to a although it is issued to anyone including individuals who has to pay on employees…… .Also known as the TIN Federal Employer Identification Number FEIN or the Federal Tax Identification Number the EIN is a unique nine-digit number assigned by the IRS to business entitles operating in the United States for the purposes of identification.

  3. acroliold says:

    Very informative post. Thanks for taking the time to share your view with us.

  4. Maysoon Ray says:

    You made some decent points there. I did a search on the subject and found most people will approve with your blog.

  5. Hi there! This is my first comment here so I just wanted to give a quick shout out and say I really enjoy reading through your posts. Can you suggest any other blogs/websites/forums that go over the same topics? Appreciate it!

  6. insurance says:


    […]Federal Employer Identification Number (FEIN): How to Get One « Homepreneurs's Blog[…]…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: