Destinations Magazine

What Does FEIN Mean for Your Business?

By Twothirstytravellers @2thirstytrav

A FEIN or federal employer identification number is used by the Internal Revenue Services to identify you and your business as a legal entity. Although you may have heard different terms like EIN number, tax identification number, federal tax ID, etc., they all are referring to the same thing. There are several different reasons to obtain a FEIN number but all of them relate to the different business entities.

To apply for an employer identification number, you must first decide which business entity you file under. The different business entity types include items such as a corporation, partnership, non-profit and a sole proprietorship.

pexels-photo-926987

After deciding which entity type you can begin the application processing to retrieve your FEIN. To begin filing, you can use the website IRS-EIN-Tax-ID.com, where they have broken the long process down into three easy to understand steps.

  1. Select Entity
  2. Enter Information
  3. Review and Submit

It is important to make sure that you enter all of your information correctly because if not, your application will be rejected, and you will have to start over. After successfully applying, you will receive your FEIN that same day, typically within an hour, via email as long as you submit the application during business hours. Your number will be nine digits and set up similar to a social security number, but the format is 12-3456789.

An EIN or tax identification number is not only required when owning a business but allows you to do certain things you would not be able to do like open a business line of credit or open a bank account in your business’s name. Without this, you would end up paying employees and buying things for your business on your own, personal accounts.

The process can seem overwhelming but with agents at IRS-EIN-Tax-ID, you can easily go through the steps without any trouble. They are always ready to assist you with any questions you may have.


Back to Featured Articles on Logo Paperblog

Magazines