Understanding Your Federal Employer Identification Number (FEIN)
For businesses in Los Angeles, understanding your federal employer identification number (FEIN) can be complicated2 min read
For businesses in Los Angeles, understanding your federal employer identification number (FEIN) can be complicated. Your FEIN is an important number used to identify your business for federal and state tax purposes. As such, it's important to understand the various types of FEINs, how to obtain them, and how to apply them.
What Is A FEIN?
Your FEIN is a unique number assigned to your business by the Internal Revenue Service (IRS) for federal tax purposes. The FEIN is used to identify your business from other businesses for matters such as tax filing and compliance. If you have any employees, you are typically required to have an FEIN, also known as an employer identification number (EIN).
Types Of FEINs
There are three different types of FEINs. The type of FEIN you need for your business depends on the legal structure of your business. These types are:
1) Sole Proprietorship: A sole proprietorship is a business that is owned and operated by a single individual. As a sole proprietor, you will use your social security number as your FEIN.
2) Partnership: A partnership is a business that is owned and managed by two or more individuals. As a partnership, you need to apply for a FEIN from the IRS.
3) Corporation: A corporation is a business entity that is legally recognized as a distinct entity from its owners. Corporations must apply to the IRS for a separate FEIN from their owner's social security numbers.
How To Apply For A FEIN
Obtaining a FEIN is typically a simple process. You can apply for a FEIN online or by mail.
The online application requires you to fill out a form with your business information, including your legal structure, business address, legal name, and business activity. Once you submit the form, you will receive your FEIN immediately.
The mail application requires you to fill out and mail in Form SS-4. Generally, it takes 4-5 weeks to receive your FEIN after mailing in the form.
How To Use A FEIN
Once you have obtained your FEIN, you can use it on your business documents for tax purposes. Your FEIN should be used on all your marital documents, such as income tax returns, payroll taxes, and other official documents. Additionally, you can use your FEIN to obtain business licenses or open a business bank account.
Consulting With An Experienced Local Business Attorney In Los Angeles About Understanding Your FEIN
To make sure you are complying with all applicable federal and state tax laws, it’s important to have an experienced local business attorney in Los Angeles provide counsel throughout the process of understanding your FEIN. At UpCounsel, we assist startups, small businesses, and Fortune 500 companies with understanding their FEINs through our network of experienced lawyers from around the world.
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