An EIN (Employee Identification Number) or FEIN (Federal Tax Identification Number) is a nine-digit number assigned individually to a business or organization as an identifier. The Internet Revenue Service assigns the EIN to businesses that meet its criteria. An EIN is needed for several business purposes, such as hiring employees, opening a business bank account, or forming a partnership or corporation.
How to Obtain an EIN
The process of getting an EIN is free from the IRS. To apply, you can choose one of the following methods:
- Apply online
- Apply by mail
- Apply via fax
- Apply by phone
However, to apply online, you need a Social Security Number (SSN) or Individual Tax Identification Number (ITIN). Without these numbers, the process involves paper applications and in-person filings, making it more complicated.
Timeframes for Receiving an EIN
You can receive an EIN immediately if applying online, which is the fastest method. International applicants must call 267-941-1099 (not a toll-free number). For those preferring fax, you can send a completed Form SS-4 to the service center for your state. Expect a return fax in about one week or two weeks if you do not include a return fax number.
Getting your federal tax number may take anywhere from five minutes to four weeks, depending on the method chosen for application.
EIN as a Legal Identifier
This unique set of digits confirms a company’s legal existence and allows for easier recognition by the IRS for U.S.-based businesses. Additionally, an EIN allows a business to perform duties that would otherwise require a social security number, like opening a business banking account. The format of the EIN is 12-3456789, helping to identify your company as a tax-paying entity within the United States of America by the Internal Revenue Service (IRS).
Your EIN is required when filing forms such as 1040, 1065, Schedule K-1 among others.