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: Mon Jan 24, 2011 09:07 pm Post Subject: FEIN
company i worked for is out of business. need thier FEIN in order to fill my fed taxes. have called their phone # several times asking that they call me but officeis closed. any suggetions other than wait?
Posted: Tue Jan 25, 2011 01:25 pm Post Subject:
Information about who is registered to a specific FEIN can be obtained free of charge via the IRS. You will need to visit a local office to prove your entitlement to the information.
Posted: Tue Mar 22, 2011 06:13 pm Post Subject: EIN number
I took my baby to the sitter and I now want to file my taxes and claim the credit but I need her EIN number, she as since relocated how do I get the EIN to file my taxes?
Posted: Tue Mar 22, 2011 07:50 pm Post Subject:
If your sitter was a private person, she will not have an EIN, but will have a SSN (unless she is not here legally). If you cannot contact her, you may be out of luck when it comes to claiming the child care credit. Contact the IRS at one of its local offices or via its website for more specific guidance.
The IRS uses the information to see if the party you claim to have paid is reporting the payment as income. If they don't report the income, your credit could be disallowed, they could be prosecuted for tax evasion, or both.
Posted: Wed Apr 06, 2011 02:13 pm Post Subject:
Can FEIN be used for a spiritual business on the Internet?
Posted: Wed Apr 06, 2011 03:04 pm Post Subject:
If you have a business with employees, are organized as a partnership, LLC, or incorporated you need an FEIN. If you are a sole-proprietor with no employees, your SSN is all the IRS wants you to use for tax-reporting purposes.
Posted: Fri Apr 08, 2011 01:39 am Post Subject: SS# vs. EIN
If I am forming an LLC as husband and wife as the only members so it will be a disregarded entity for tax purposes should I get an EIN or use my SS#.
Wondering what the pros and cons are
Posted: Fri Apr 08, 2011 03:13 am Post Subject:
If you are forming an LLC, you will need a FEIN separate from your SSN. SSN can only be used by a sole-proprietor for reporting income from self-employment/business.
You will probably also need a separate state tax ID also.
Posted: Mon Apr 11, 2011 11:01 pm Post Subject:
what number do i call to get my fein #. i already have one but lost it
Posted: Tue Apr 12, 2011 04:33 am Post Subject:
Contact your local IRS office.
Add your comment