Federal Tax Number- Do You Need One For Your Business?

Federal Identification Number (FEIN)

Federal Id Number (FEIN)

The government form you’re feverishly filling out has a blank demanding your business’s Federal Tax ID Number or Employer Identification Number (EIN). Unfortunately, you don’t have

one. What is a federal tax ID number, does your business even need one, and how do you get it?

A federal tax identification number is also known as an employer identification number or EIN. It is a number assigned solely to your business by the IRS. Your tax ID number is used to identify your business to several federal agencies responsible for the regulation of business.

How to set up Federal Tax Number:

To set up a federal tax ID number also called an Employer Identification Number or EIN, contact your nearest Local IRS Field Office, or call the IRS Business and Specialty Tax Hotline at 800-829-4933.

You can also apply online for an EIN via the IRS web site. The online application asks the questions, you provide the answers and just like that, you get your EIN immediately. You can then download, save, and print your EIN confirmation notice. If you want to apply the old-fashioned way, the form you’ll need to fill out is IRS Form SS-4.

Does your business need a federal tax number?

If your business does not have employees, the IRS recommends you label the top of the form SS-4 for Identification Purposes Only.

Any business offering products or services that are taxed in any way must get a federal tax ID number. If your state taxes personal services or if you are required to collect sales taxes on your sales, you need a federal tax ID number. All the government forms you will be required to file for your business will require either a Social Security number or a tax ID number.

It’s safe to say that any business that has employees and/or pays any kind of taxes will need a federal tax ID. Best advice is, when in doubt, get one. It’s easy to

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