Federal Employer Identification Number (Tax ID)

General Information

An Employer Identification Number (EIN) is a 9-digit federal tax identification number for a business. Like a social security number of an individual, an EIN lets the Internal Revenue Service (IRS) recognize a business for tax filing and reporting purposes. An issued EIN is the permanent federal tax identification number for the particular business entity and will never be reassigned to another business entity. An EIN is sometimes called a Tax ID number.

Purpose/Necessity

In most cases, an EIN is required before a bank account may be opened or before a business license may be issued to a business entity. An EIN is always required before the IRS will accept a tax return for the business. An EIN is frequently asked for by the Social Security Administration. Finally, an EIN may be required by any national entity, government or private, needing to distinguish a business from others with similar names.

Some sole proprietorships or single-member LLCs with no employees may use the owner’s social security number as the Tax ID number for the business. However, many such owners prefer to obtain an EIN so the owner’s social security number does not have to be disclosed in business dealings where it comes up.

Frequently Asked Questions

  • Is an EIN necessary?
    • According to the IRS, an EIN is necessary if the business:1. Is a Corporation or a Partnership
      2. Is a Non-Profit Organization
      3. Has or will have employees (includes sole proprietorships and LLCs)
      4. Files employment, excise, or alcohol/tobacco/firearms tax returns
      5. Withholds taxes on income, other than wages, paid to a non-resident alien
      6. Has a Keogh plan
      7. Is involved with a trust (except certain grantor-owned revocable trusts), estate, IRA, or exempt organization business tax return
      8. Is involved with a real estate mortgage investment conduit, farmers’ cooperative, or health benefit/pension plan as plan administrator
  • Will my business name as listed with the Secretary of State be identical to the business name on record with the IRS?
    • Not necessarily, because the IRS does not accept most punctuation. The IRS accepts hyphens (-) and ampersands (&) but not periods (.), commas (,), plus symbols (+), or at symbols (@), for instance. Where punctuation is included as part of the legal name on file with the Secretary of State, it will need to be eliminated for the IRS but the IRS name should otherwise be as close as possible to the existing legal name.
  • If something about the business changes, is the EIN still valid?
    • The IRS advises that most of the time a business will need a new EIN when its ownership or structure has changed, but not when merely the name of the business has changed or the location of the business is changed/new locations added. A change in ownership or structure means the business entity type changes (ex: a sole proprietor incorporates).
  • When may an issued EIN be used?
    • According to the IRS, even upon issuance of the EIN by the IRS, “it will take up to two weeks before your EIN becomes part of the IRS’ permanent records. You must wait until this occurs before you can file an electronic return, make an electronic payment, or pass an IRS Taxpayer Identification Number matching program.”

Legal Services Offered and Cost

Obtain Federal Employer Identification Number
Legal fees: $100 flat fee
Filing fees and other costs: none
This includes:

  1. Review of client’s information to ensure legal requirements are fulfilled
  2. Submission of information through IRS Form SS-4
  3. Email confirmation of EIN issuance with number and IRS confirmation letter as PDF

If you are ready to get started, please CLICK HERE to enter basic information using our secure online form.

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