How to Get Started with a Federal Employer Identification Number in Chicago
Are you looking to get a Federal Employer Identification Number (FEIN) in Chicago3 min read
Are you looking to get a Federal Employer Identification Number (FEIN) in Chicago? You’re in luck: Chicago is a designated metropolitan area, making it much easier for businesses located there to get their hands on a FEIN.
Getting an FEIN is an important step for any business in the US. It serves as a unique identifier for businesses in transactions with the US Internal Revenue Service (IRS) and other government entities. In some cases, the FEIN is also used for private transactions, such as when opening a bank account with a financial institution or when applying for business credit.
In this article, we will discuss the different steps for applying for a FEIN from the IRS and provide you with the resources you need to get started.
What Is A Federal Employer Identification Number?
A Federal Employer Identification Number, or FEIN, is a unique nine-digit identification number issued by the United States Internal Revenue Service (IRS). This number is used by businesses to identify themselves in transactions with the federal government, such as in record-keeping and tax filing. It is also sometimes used in private transactions, such as when opening a bank account or applying for business credit.
The FEIN is also known as a Federal Tax Identification Number, or TIN. As the name suggests, it is used by the IRS to identify businesses for the purpose of collecting and processing taxes.
Am I Eligible for a Federal Employer Identification Number?
Most businesses in the US are eligible to apply for a FEIN, but there are a few exceptions. The IRS does not issue a FEIN to any sole proprietor who has not hired employees or is not otherwise required to file TIN-related forms with the IRS. Additionally, a FEIN is not issued to individuals who have no business purpose, such as a hobby.
How to Apply for a Federal Employer Identification Number
Applying for a FEIN in the US is relatively straightforward, though depending on the type of business entity you are forming, the process and requirements may vary. In general, you can apply for a FEIN in three ways:
Online: The fastest and easiest way to apply for a FEIN is online. Visit the IRS website to start the online application process.
By Mail: You can also apply for a FEIN by completing an official IRS Form SS-4 and mailing it to the IRS. To do this, you’ll need to download the form from the IRS website, complete it, and mail it to the appropriate address.
By Phone: You can also apply for a FEIN by calling the IRS Business and Specialty Tax Line at 1-800-829-4933. This option usually requires more time as you will need to answer a series of questions from an IRS representative.
What Documents Are Needed When Applying for a Federal Employer Identification Number?
You will need to provide the IRS with certain documents when applying for a FEIN. The exact documents needed will vary based on the type of business entity you are forming, but in general, you will need to provide the following:
Legal Name: You will need to provide the legal name of your business as it appears on official documents such as certificates of incorporation, partnership agreements, or trust documents.
Business Structure: You will need to indicate the type of entity that you are forming, such as a partnership, corporation, or limited liability company.
Mailing Address: You will need to provide the address where the IRS can mail correspondence relating to your FEIN.
Tax Classification: You will need to indicate the tax classification of your business, such as a sole proprietorship, partnership, or corporation.
Officers and Partners: Depending on the type of business entity that you are forming, you may need to provide information about the business owners or qualifying officers.
Additional Resources for Businesses in Chicago
If you need additional help or resources when applying for a FEIN in Chicago, there are several places you can turn, such as the local Small Business Administration district offices, the Illinois Department of Commerce and Economic Opportunity, or the Small Business Development Center (SBDC). These organizations provide an array of services and resources for small business owners in the state, such as grants, assistance with loan applications, business counseling, and more. In addition, there are a number of online legal platforms (e.g., UpCounsel) that can connect you with experienced business attorneys in your area who can provide advice and guidance on a variety of issues, including FEIN applications.