Apply Fein: Everything You Need to Know
To apply for a FEIN (Federal Employer Identification Number), you must go to the IRS website and follow the free registration process to get your ID number.3 min read
To apply for a FEIN (Federal Employer Identification Number), you must go to the IRS website and follow the free registration process to get your ID number. An employer ID number is used by the IRS to label and tax your business. A FEIN, or EIN, is also known as an employer identification number, and many businesses need to use one. Many types of businesses need an EIN to pay taxes; businesses that do not have employees must still obtain an EIN. For instance, many banks ask for an EIN before applying for a business checking account. An EIN is like a social security number for your business, and it is generally used as a tax number.
You must get an EIN under the following circumstances:
- Creating a new business
- Opening a business banking account
- Establishing a business line of credit
- Changing the legal characterization of your entity (ex. you choose to incorporate a partnership or sole proprietorship)
- Representing states that operate a company after an owner’s passing
If you’re not certain you need an EIN, you can go the IRS official website to find additional parameters on registration.
When it comes to other parties, a responsible party ensures that someone who has authority completes an EIN form. A responsible party should be an entity or individual that manages, directs, or controls an entity and a disposition of an entity’s assets and funds. Regarding small businesses, the responsible party could be the following:
- Principal officer
- General partner
The first step you can take is applying online. Many individuals use an online form known as the EIN assistant, and it is available between 7am and 10pm, EST, Monday through Friday. Its the best choice to finish the application process in one sitting, since you would have to start again if you must stop the application process.
The IRS states the following:
- The applicant must finish the application in a single session, with no save options available
- For security reasons, the session faces expiration after 15 minutes of inactivity, at which point you’ll have to start the application over
When finishing the form, the information is then confirmed, and you get an EIN immediately. The online option is available for most companies in the United States. The IRS affords an interview-style variation of the application. As opposed to completing confusing forms, interview style allows you to answer simple questions. The document would then be generated automatically, and the number would be issued.
The Phone Method
Although applying online is the easiest method, the IRS allows a phone option via the Business & Specialty Tax Line at the following number: 800-829-4933. Operating hours are from 7am to 9pm local time, Monday through Friday. A rep will record your information and will assign you the number at the end of the process. Also, international applicants should call this number: 215-516-6999 and not use a toll-free number. To get an EIN via fax, you can fax a finished SS-4 application to the state-provided fax number. If you include a fax number, you can get your EIN via fax within four business days.
The Mail Method
The mail method entails completing the same SS-4 form and submitting it to the IRS. In addition, you will receive your number within four weeks. Upon receiving your paperwork, keep it in a secure location for future reference. It is also vital to reference the following:
- Withholding tax deposit schedules
- Legal name
Also, you need the number when filing the following documents:
- Federal payroll taxes
- Business income taxes
The EIN is also necessary when filing local and state taxes. Regardless of your application method, the number will not become active in the system for at least two weeks.
To learn more about how to apply for a FEIN, you can post your need, or post your job on UpCounsel’s website. UpCounsel’s lawyers have graduated from some of the best law schools in the nation and will be there to help you with any IRS troubles you may have, or if you cannot decide if you must have an EIN. Moreover, they will help you help you in regards to filing taxes and general questions you may have on starting a business.