Federal Employer Identification Number (EIN or Tax ID)
Similar to a person’s social security number, an employer identification number (EIN) is a federal nine-digit number that is assigned to and identifies a business entity for tax purposes. This number is issued by the Internal Revenue Service (IRS).
Obtaining an EIN is normally one of the first things a business owner applies for, after incorporating a new business or forming an LLC.
The IRS generally requires the following types of businesses to obtain an EIN:
- All corporations
- All Limited Liability Companies (LLCs) with more than one member
- Any business that hires employees, including sole proprietorships and single-member LLCs
Frequently Asked Questions
How do I apply for an EIN?
You may apply directly with the IRS to obtain the EIN number for your company. If you would prefer CorpCo to handle the processing of this application on your behalf instead, we will do so for a nominal service fee. The service may be added to your company formation order or ordered as a stand-alone service. The EIN is normally obtained within 1-2 business days of receiving your completed application.
What is an Employer Identification Number (EIN)?
Often referred to as the “Social Security Number” for a company, a Federal Employer Identification Number (EIN) identifies a business for tax purposes. This number may also be referred to as a Federal Tax ID and issued by the Internal Revenue Service (IRS).
What is the difference between an EIN and a Federal Tax Identification Number?
There is no difference. These are just two different terms for the identification number that the IRS assigns to a business. Other terms are: FEIN, Federal Employer Identification Number, Tax ID No., and Employer Identification Number.
Who is required to obtain a Federal Employer Identification Number (EIN)?
The IRS says you are required to obtain an EIN if:
- You have employees
- You are conducting business as a corporation partnership
- You file employment taxes, excise taxes, or alcohol tobacco and firearms taxes
- You withhold taxes on income, other than wages, paid to a non-resident alien
- You have a Keogh plan
- You are involved with any of the following types of organizations:
- Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
- Real estate mortgage investment conduits
- Non-profit organizations
- Farmers’ cooperatives
- Plan administrators
- Open business checking accounts
- Establish accounts with certain vendors
- Pay employees
- Issue 1099s to contracted service providers
- File taxes