How to Get a FEIN Number | Lovie — US Company Formation

A Federal Employer Identification Number (FEIN), often referred to as an EIN, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States. Think of it as a Social Security number for your business. It's crucial for a wide range of business activities, including opening a business bank account, hiring employees, filing business tax returns, and applying for business licenses and permits. For many business structures, like LLCs and Corporations, obtaining a FEIN is a mandatory step before commencing operations. Understanding how to obtain a FEIN is a fundamental part of launching a legitimate business in the U.S. While the process is managed by the IRS, it's straightforward and, importantly, free of charge. This guide will walk you through the various methods available to apply for your FEIN, who needs one, and why it's so vital for your business's compliance and functionality. Whether you're forming a single-member LLC in Delaware or a multi-state C-Corp in Texas, the FEIN application process remains consistent.

What Exactly is a FEIN Number and Why Do You Need One?

A FEIN, or EIN, is essentially the business equivalent of a Social Security Number (SSN). Issued by the IRS, this nine-digit identifier is used to track business entities for tax purposes. It is mandatory for most businesses that operate as corporations or partnerships. Sole proprietors and single-member LLCs typically do not need an EIN unless they meet certain criteria, such as having employees or operating a Keogh plan. However, even if not strictly required, obtaining an EIN can be beneficia

FEIN (EIN) is a nine-digit tax identification number for businesses.
Required for corporations, partnerships, and LLCs with employees.
Essential for opening business bank accounts and tax filings.
Helps separate personal and business liability.

Who Needs to Obtain a FEIN Number?

The requirement to obtain a FEIN is determined by your business structure and activities. Generally, any business entity that is not a sole proprietorship or a disregarded entity (like a single-member LLC that hasn't elected to be taxed as a corporation) will need one. This includes corporations (S-corps and C-corps), partnerships, and Limited Liability Companies (LLCs) that have more than one member. Even single-member LLCs and sole proprietorships must obtain a FEIN if they hire employees, ope

Corporations and partnerships must have a FEIN.
Multi-member LLCs are required to get a FEIN.
Sole proprietors/single-member LLCs need one if hiring employees or with specific plans.
Non-profits and businesses electing corporate tax status require a FEIN.

How to Apply for a FEIN Number Online (The Fastest Method)

The most common and efficient way to obtain a FEIN is through the IRS's online application portal. This method is available only to U.S. citizens, U.S. residents, and businesses with a physical address and principal place of business in the U.S. or its possessions. The online application is available Monday through Saturday, typically from 7:00 AM to 10:00 PM Eastern Time. It's a free service provided directly by the IRS, and you will receive your FEIN immediately upon successful submission. To

Use the IRS's free online application portal for immediate results.
Available to U.S. citizens, residents, and businesses with a U.S. presence.
Requires accurate business details and information about the responsible party.
Receive your FEIN confirmation (CP 575) instantly upon approval.

Alternative FEIN Application Methods: Fax and Mail

While the online application is the fastest way to get a FEIN, the IRS also offers fax and mail submission options for those who cannot apply online or prefer a different method. These methods are generally slower, with processing times that can range from a few days to several weeks. However, they are still free of charge and accessible to all eligible entities. To apply by fax or mail, you must first download and complete Form SS-4, Application for Employer Identification Number. This form re

Download and complete Form SS-4 for fax or mail applications.
Requires the same detailed business and responsible party information.
Fax applications are faster than mail but slower than online.
Mail applications can take several weeks for processing and delivery.

FEIN vs. State Tax ID Numbers: Understanding the Difference

It's common for business owners to confuse a FEIN (Federal Employer Identification Number) with a state tax identification number. While both are crucial for business operations, they serve distinct purposes and are issued by different authorities. A FEIN is a federal number issued by the IRS, used for federal tax purposes, reporting to the IRS, and often for opening business bank accounts nationwide. It identifies your business entity at the federal level, regardless of which state you operate

FEIN is federal; State Tax ID is issued by individual states.
FEIN is for federal tax reporting and national business activities.
State Tax IDs are for state-specific taxes (sales, payroll, income).
Requirements and processes for State Tax IDs vary by state.

Common Mistakes to Avoid When Applying for a FEIN

While the FEIN application process is straightforward, several common mistakes can lead to delays or issues. One of the most frequent errors is providing inaccurate or inconsistent information. This includes misspellings of business or personal names, incorrect addresses, or discrepancies between the information provided on Form SS-4 (or the online application) and your state business registration documents. For example, if your LLC was registered in Ohio as 'XYZ Solutions LLC' but you apply for

Ensure all business and personal information is accurate and matches state filings.
Correctly identify the 'responsible party' and provide their valid SSN/ITIN.
Only apply for a new FEIN when there's a significant change in business structure or tax status.
Be aware that the IRS FEIN application is free; avoid paid third-party services for the application itself.

Frequently Asked Questions

Is it free to get a FEIN number?: Yes, obtaining a Federal Employer Identification Number (FEIN) directly from the IRS is completely free. Be cautious of third-party websites that charge a fee for this service.
How long does it take to get a FEIN number?: Applying online through the IRS website typically results in an instant FEIN assignment. Fax and mail applications can take several days to several weeks for processing.
Can I get a FEIN for my sole proprietorship?: Yes, a sole proprietor needs a FEIN if they hire employees, operate a Keogh plan, or are involved in specific trusts. Otherwise, it's optional but recommended for opening business accounts.
What information do I need to apply for a FEIN?: You'll need your business legal name, DBA name (if applicable), business address, business structure, the responsible party's name and SSN/ITIN, and details about your business activities.
Can a non-US citizen get a FEIN?: Yes, a non-US citizen can obtain a FEIN if they are a responsible party for a U.S. business, provided they have a valid ITIN or SSN and the business has a U.S. physical address or principal place of business.

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