What is a Federal Tax ID or EIN?
A Federal Tax ID is for a business what a Social Security Number (SSN) is for an individual.
A Federal Tax ID is a nine-digit number in the form 12-1234567.
The US Internal Revenue Service (IRS) issues Federal Tax IDs.
The official IRS name for a Federal Tax ID is
Employer Identification Number.
This is commonly shortened to EIN or FEIN.
Who can get a Federal Tax ID (EIN)?
The IRS will issue an EIN to many types of business entities, some of which are:
- Sole Proprietorship
Why do I need a Federal Tax ID (EIN)?
- If your business has employees then you need a EIN.
- If your business is a partnership or corporation then you need a EIN.
- Certain types of business entities such as Trusts, Estates, Cooperatives and Nonprofits are also required to have a
- Most banks require a EIN as a requirement to open a bank account or issue a loan.
- A EIN may be required to get business licenses on all levels of government.
- A EIN may be required to register tax accounts on the state and local levels.
Can a LLC get a Federal tax ID (EIN)?
A LLC is a legal business entity based on state law.&nbasp;
The IRS does not consider a LLC to be a legally taxable entity.
A LLC can choose to be taxed on the federal level in a few different ways.
The LLC may choose to be taxed as a Corporation.
If a LLC does not choose to be taxed as a Corporation then the way the income of a LLC gets taxed by the IRS depends on the number of
Memebers in the LLC.
A LLC with more than one Member gets taxed as a Partnership.
A Singe Member LLC gets taxed as a Sole Proprietorship.
The IRS considers a Single Member LLC as a "Disregarded Entity" for income tax purposes.
A Disregarded Entity is a business that is separate from the owner for liability purposes, but it is the same as the owner for
income tax purposes.
A Single Member LLC which does not choose to be taxed as a Corporation is a separate entity for liability purposes.
A Multiple Member LLC is NOT considered a Disregarded Entity by the IRS for income tax purposes.
How long is a Federal Employer ID Number valid?
The IRS cannot cancel a EIN.
Once an EIN has been assigned to a business entity, it becomes the permanent
Federal Taxpayer Identification Number for that entity.
Regardless of whether the EIN is ever used to file Federal tax returns, the EIN is never reused
or reassigned to another business entity.
The EIN will still belong to the business entity and can be used at a later date, should the need arise.
The EIN stays with the business at the federal level even after the business has been
dissolved at the state level
If you no longer need a EIN, you have to explicitly cancel the
EIN wih the IRS.
How can I get a EIN Online?
We can get your EIN in most cases on the same day that you place your order.
If you are ready to order a EIN Online now just fill in the form below and press
We will get your EIN as quickly as possible.
EIN ONLINE ORDER FORM