by Ganesh » Mon Sep 03, 2007 06:44 am
Businesses use the FEIN number to identify themselves for tax reporting, banking and other reasons. Just like Social Security Number is specific to a certain person, the FEIN number is also specific to a certain business.
What is a FEIN number?
FEIN or Federal Employer Identification Number is also known as Federal Tax Identification Number. This 9 digit code is used by businesses in order to classify and identify them as a tax payer, for banking services and other official and legal purposes. Businesses with no employees and sole proprietorship may use the Social Security number for tax reporting. But for companies with employees must have FEIN or Federal Employer Identification Number. For each business owned by the same person, a different FEIN number would be required. It is unique to a business just like Social Security number is unique to an individual.
How to apply for FEIN?
Although an application for FEIN may take weeks to get processed, it is actually very easy to apply for FEIN.
You may collect an SS-4 Form from the office of IRS or the Social Security Office, fill it out and send it to the office of IRS. There is no application fee. Make sure you send it through registered post to guarantee the safe delivery of your form. You can download PDF version of IRS SS-4 form from here.
IRS has launched their interview style application for FEIN where they ask you certain questions online and update their system based on the information that you provide them. There is no form to fill out and there is no lengthy process of waiting for the Federal Employer Identification Number (FEIN) either. If you are using their system of interview style application:
IRS allows you to make an online application.
You may collect an SS-4 Form from the office of IRS or the Social Security Office, fill it out and send it to the office of IRS. There is no application fee. Make sure you send it through registered post to guarantee the safe delivery of your form. You can download PDF version of IRS SS-4 form from here.
IRS has launched their interview style application for FEIN where they ask you certain questions online and update their system based on the information that you provide them. There is no form to fill out and there is no lengthy process of waiting for the Federal Employer Identification Number (FEIN) either. If you are using their system of interview style application:
- You don't need to fill out an SS-4 form and send it to the IRS office anymore
- You don't have to get into the lengthy process of application for FEIN
- You must answer the online questionnaire provided by them
- IRS will then validate the data that you have provided
- You will receive your EIN number immediately after successful verification
IRS allows you to make an online application.
How to find FEIN number?
If you are looking for the FEIN of a company you may locate it using several different ways. Following are few of the ways you can locate EIN:
- For public companies you may check out the 10-Ks, 20-Fs and other SEC filings. These companies often print the EIN on the first page of such filings. These SEC filings may be found through the U.S. Securities and Exchange Commission's EDGAR database. It is free of charge.
- For non-profit organizations you may check Form 990 in order to get the EIN. These organizations often include their EIN on this form that provides financial information and the names of executives of these companies. You may check Guide Star to access the database where you can find the Form 990 of several organizations. This is a free service.
- Private companies may have it in their company website or the company invoice. You may use the website of KnowX which is a commercial vendor that allows you to search using a FEIN that displays a list of relevant results. You may be required to pay for their services.
Why do you need FEIN?
Following are a few situations when the Federal Employer Identification Number is required:
- For starting a new business which is not a sole proprietorship
- Purchase of an ongoing business
- Any change in the organization type
- When hiring employees for the first time
- To create a pension plan in office
- To form a trust
Can I use FEIN to purchase insurance?
Federal Employer Identification Number works best with businesses and not with purchasing insurance. Insurance companies prefer your Social Security Number rather than your Federal Employer Identification Number.
How is FEIN compared to Social Security Number?
FEIN is used by employers, partnerships, sole proprietors, non-profit organizations, trusts, corporations, estates, government agencies and other business entities. Employers may choose to use either their Social Security Number (SSN) or their FEIN for reporting taxes withheld on behalf of their employees. However, the credit bureaus and credit issuers can tell between SSN and FEIN.
Related Readings
What is a FEIN number?
Posted: Tue Dec 14, 2010 09:53 am Post Subject:
Whats the difference between FEIN and EIN?
Essentially there is no difference. However, most states with a corporate/business/individual income tax will require their own tax ID number for the purpose of filing any tax return other than for an individual or sole proprietor. So you could have a Federal EIN and a separate state EIN.
This is common in most states.
Posted: Wed Dec 29, 2010 08:28 pm Post Subject: FEIN number
I am a sole proprietor (MD) who travels interisland for work in Hawaii. There is an excellent coporate travel deal with one of the airlines, but they require a FEIN to enroll. My tax person said this will mean I have to file and pay additional taxes as compared to now, when I just use my SS number. Is this correct? How can that be?
Posted: Thu Dec 30, 2010 05:10 am Post Subject:
Your tax person is an idiot! If you are a sole proprietor, an LLC, or incorporated with employees, you already have a FEIN -- you need it to report payroll taxes. If you are a sole proprietor with no employees, the IRS prefers that you use your SSN, since your only filing requirement is a Form 1040 plus a Schedule C.
But, you should speak to someone at the airline before you turn to the IRS for a FEIN. Explain your situation. Then, if the airline still will not accept your SSN (with a copy of your tax return to show that you are, indeed, a business person) for entry into their "corporate travel deals", then you simply apply for a FEIN for your practice. It does not mean that you will pay any additional taxes, but you may have to file a return using that FEIN. Just show $0 income and $0 expenses, and continue to file your 1040 with the Schedule C.
Or report the income and expenses of the practice under the FEIN, pay the taxes, and report no personal income under your SSN. The problem with doing it that way is that you will not be accruing anything toward Social Security retirement, and you may end up paying taxes under the FEIN at a higher marginal rate, but you will still deduct all of the expenses of the practice prior to calculating the income tax due.
Your legal adviser may be wondering, like I am, why you have not incorporated your medical practice in order to avoid personal liability for the financial obligations of the practice.
Posted: Thu Jan 13, 2011 06:09 pm Post Subject: name change
What do I need to do if I change the name of the company. Can I keep the same FEIN and to whom do I report this change
Posted: Thu Jan 13, 2011 06:19 pm Post Subject:
If all you have done is a simple name change for your business, you will probably be able to retain the same FEIN. You need to go to your local IRS office to discuss the matter.
Posted: Thu Jan 20, 2011 04:06 am Post Subject:
how can i get this if i dont have a social security number?
Posted: Thu Jan 20, 2011 04:05 pm Post Subject: fein
I am thinking about starting a sand art business. I would go to craft shows or kids party , I want to go to a fair that needs my fein. how would this work as it is not a constant income as I may go to 5 or 6 shows a year.
Posted: Thu Jan 20, 2011 04:42 pm Post Subject: FEIN AND EIN
My company has an EIN under which we pay payroll taxes and a different FEIN under which we pay sales taxes. Which number should I use for Customers who need a W-9?
Thanks
Posted: Thu Jan 20, 2011 06:56 pm Post Subject:
If you literally have two FEINs for the same business, the W-9 to give to others would be the one you use to file your business tax returns -- that should be the same one you use to report Employee FIT/SS/MC withholding and payroll taxes.
Posted: Fri Jan 21, 2011 06:21 pm Post Subject:
I have a fein but I need to find what the name of the business is. Is there a place I can look that won't charge for the info
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