Frequently Asked Questions About FEIN in Los Angeles
Running a business can be difficult3 min read
Running a business can be difficult. From staying compliant with taxation regulations to protecting your company from liabilities, ensuring your business is following the law correctly is a full-time job. As a business owner in Los Angeles, you may be interested in learning more about your federal employer identification number (EIN), including what it is and how to get one. To make sure you receive accurate information, consider seeking competent legal support from experienced business attorneys. To help you understand this important business requirement, we have compiled a list of the most frequently asked questions regarding EINs.
What is an EIN?
An EIN, or employer identification number, is a unique nine-digit number that the IRS assigns to a business. It is required by employers to report taxes and is similar to a Social Security number for individuals. It is widely used to open business bank accounts, process payroll taxes, and obtain business licenses and permits. An EIN allows the IRS to track the activities of business entities for taxation and regulation, as well as helps to protect personal identification information.
What is the difference between an EIN and an FEIN?
The acronym EIN and FEIN are interchangeable, but refer to the same thing. They are both acronyms used for employer identification numbers. The acronym EIN stands for employer identification number, and FEIN stands for federal employer identification number.
Why do I need an EIN?
An EIN is a requirement for businesses in the U.S., and is necessary to open a bank account, hire employees, and file taxes. It is also generally required whenever a business interacts with the government, such as when applying for a business license or obtaining a permit.
Do I need an EIN if I’m self-employed?
Yes. Even if you are self-employed, you still need an EIN. This is because the IRS needs a way to identify employers when they are filing taxes. A self-employed individual will also need an EIN if they plan to hire employees.
How do I get an EIN?
Getting an EIN is a relatively simple process and can be done online or through paper applications. In most cases, applying for an EIN is free, although some third-party providers may charge a fee. For the most accurate and up-to-date information, consider seeking the counsel of a business lawyer in Los Angeles.
Can I apply for an EIN without a Social Security Number (SSN)?
Yes. The IRS allows non-U.S. citizens and those without SSNs to apply for an EIN. To do so, they must submit documentation such as a passport, driver’s license, or other government-issued ID.
Do I need to report changes to my EIN?
The guidelines for reporting changes to your EIN can vary by state. Generally speaking, changes that may require you to report to the IRS include changes in your company’s ownership or structure, such as when you merge with another business or switch from a corporation to a partnership. Any changes should be reported as soon as possible.
As a business owner, it is important to understand federal taxation regulations and the requirements for obtaining an EIN. Whether you are just starting out or are an experienced business owner, it is important to have a comprehensive understanding of the regulations so you can file all taxes correctly. To ensure that you are compliant with local, state, and federal regulations, consider consulting experienced attorneys in Los Angeles.