If you are into an entrepreneurship foray, either as LLC, C Corporation or S Corporation, or any other corporate entity you need to have an Employer Identification Number (EIN).  It is an eight digit number which is required by Internal Revenue Service (IRS) for taxation purpose.  Many people also might be wondering if the Employer Identification Number (EIN) and Federal Employee Identification Number (FEIN) are same.  Both are used interchangeably. If an IRS asks the businesses for their tax ID number to identify their business, it is known as the Taxpayer Identification Number or TIN for short. And, when you use a tax ID number for reporting your employment taxes, we can refer to it as the tax ID or EIN for short.  These are nine-digit numbers and are needed for tax tracking; basically, there is no basic difference between the two. The only difference is on its use on tax documents.

To be eligible for EIN, you must have your business in the U.S, A., and have your social security number.  You can also have any number of employees. In fact, only a sole proprietor who is only an owner can also request for the EIN number.

Business requires an EIN to pay to employees and to file the business tax returns. Furthermore, many financial institutions like credit unions, banks, and even brokerage houses require EIN to open their bank account. The number once allotted does not expire nor can it be issued to any other business, even if the earlier employer has to leave the business. However, businesses who have changed their owner should apply for a new EIN.

How to Apply for Your Employer Identification Number?

You have to apply to IRS to Get EIN Online. You can either apply through fax, phone or mail. However, you can get EIN online also.  Fill a short form and get FEIN. Visit the IRS website, go to EIN Assistant page and get started. You also have to consult with your CPA or attorney to make sure that you are following the tax laws and get the best tax advantages for your particular situation. In the form, you also might require to fill the type of business structure you have and your purpose of applying. And other sections. Once you have filled up the complete form, the system will then generate a new EIN for you. You will find an official IRS document is loaded on your computer, which confirms that you have successfully filled your application and now you can get FEIN online.

Even if you have lost your Employer Identification Number (EIN), you can call the IRS Business and Special Tax line 800-829-4933.  Once the application is filled and you got an EIN, it will never be canceled. But if you feel now you do not need EIN, IRS will close your business account but your number will still remain with you, in case you might require it in future.

Exemptions 

If your organization qualifies for tax exempt status, this ensures your organization is formed legally.  Generally, all organizations get exemption under IRC 501 (a). Your statue is revoked automatically if you failed to file the annual return or notice for three consecutive years. When you apply for an EIN, it is assumed that you are registered and your time will start now.

However, for many businesses, this whole process might get tedious as they have to be very specific and exact in filling the form. As now each business requirement is different and so is the tax structure, you might be landed up filling the wrong information. It might also be possible that you are so busy that you miss this critical part. So now there are many incorporation service providers that offer you the services for getting your EIN or FEIN Online.  It is less tedious and the fastest way to get your number and avail ample of advantages that it offers.