Understanding the process to apply for a Federal EIN (FEIN) Number online can save you hours as the owner of a business. You need to take appropriate steps once you determine you need a federal employer identification number of FEIN. Once you figure out, determine the need for the number, it is time to analyze the various application steps. Acquiring an FEIN should be a simple process, but the path you take to get there will dictate the complexity level.
Applying for a FEIN online and going through the online application process is seamless. It creates efficiencies in helping you get your business in good standing with the Internal Revenue Service right out of the gate. If you are a corporation, partnership, have employees, or meet a variety of other criteria, a FEIN is going to be an absolute need for your organization.
Steps to Get a Federal EIN (FEIN) Number Online
- Prepare Business Owner Information
- Apply for a FEIN (Federal EIN) Number Online
- Apply for a FEIN (Federal EIN) Number by Phone, Mail or Fax
- Why Do I Need to Obtain an IRS FEIN Number?
- How Do I Get a FEIN Number?
- What is the Difference Between a FEIN Number and an EIN?
1. Prepare Business Owner Information
Preparation of business owner information needs to happen before you go to apply for an IRS FEIN. The business owner information needs to contain the identity of the responsible party in the business. The responsible party will be the person or entity that will control, direct, and even manage the funds and assets of the organization, should a disposition ever be necessary.
The organization needs to label its principal address as well as fill out other details about what type of business it is, the industry, and so on. Understanding all business owner information puts you in a better spot to go through the application process.
2. Apply for a FEIN (Federal EIN) Number Online
Applying for a FEIN number online is very easy and can be something you accomplish in under ten minutes. The online application process for a FEIN takes the form the Internal Revenue Service requires and places it out on the Internet. Once you locate the online form, you can fill it out from any computer or even a mobile device, such as a tablet.
The online application process will need the entry of the responsible party as well as other pertinent business information. Once you complete the online application, it is then the Internal Revenue Service will do validation of the data entry. They will look at the Social Security Number of the responsible party, for example, ensuring it is legitimate. Once that validation completes, you will have the FEIN number back in minutes.
3. Apply for a FEIN (Federal EIN) Number by Phone, Mail or Fax
You can apply for a FEIN number by phone, mail, as well as fax. The other three options will not be as speedy as going through the online application process, but it is still three other ways you can go to get to the federal employer identification number.
The phone application process is the second quickest behind applying online. When you apply over the phone you are talking to the Internal Revenue Service and answering questions, filling out the form in a verbal fashion. They will complete the validation of the information you provide before giving you the number.
The mail and fax options will take the longest of all methods by far, but will definitely work. When you apply by mail or fax you are manually filling out the Internal Revenue Service forms they require. Once you complete the forms, you either email them or fax them in. The IRS then has to receive the forms, do the manual validation, before either sending the FEIN back in fax or via snail mail.
4. Why Do I Need to Obtain an IRS FEIN Number?
A FEIN number is a requirement with the Internal Revenue Service. They require the number so that they can track revenue, profit made by the business. The Internal Revenue Service will look at the revenue brought in, payment to employees for payroll taxes, and so on at the end of the year, during tax time, to ensure the organization pays appropriate taxes with the basis of its revenue and operations.
5. How Do I Get a FEIN Number?
It is easy to get a FEIN number as you have a variety of options. You can figure out how to apply for a FEIN online, or you can go with the other methods. The phone option is definitely there and requires a call to the Internal Revenue Service. The other two ways you can get the FEIN is via mail or fax. The other two options exist, but again you have to expect some additional delays in processing when you compare them to the online or phone application methods.
6. What is the Difference Between a FEIN Number and an EIN?
There is no difference at all between the FEIN number and an EIN. The EIN or employer identification number is a short way of saying FEIN or federal employer identification number. With the two numbers being identical, it is important not to mix them up and think you need two different numbers. They are exactly the same! As an organization, you also should only have one EIN or FEIN. You do not need multiple identifiers, nor should you. Having just one registry with the Internal Revenue Service is important to remember. If you apply and get a denial, it may be because of the company already has an EIN.
Applying for a FEIN online is the way to go once you determine you need the unique identifier. Getting in good standing with the Internal Revenue Service is important for all organizations. The IRS uses the FEIN as a mechanism to understand where you are doing business, the revenue you are bringing in, and so on. The online application process makes it simple to get the number and it is really a matter of acting on the capability available.