TOP DRAWER ARTICLE

Does Your Business Need an FEIN?
by
HL Carpenter

What's an FEIN? FEIN is the acronym for a Federal Employer Identification Number. Similar to a Social Security number, but for businesses, trusts and other entities, FEIN's are assigned by the Internal Revenue Service.

Who should have an FEIN? If you have employees, you will need an FEIN in order to file payroll reports, even if you are a sole proprietor. Corporations, trusts and certain estates are also required to have identification numbers.

How do I get an FEIN? The good news is they're free, and you have several choices if you need to obtain one. For instance, you can apply on-line at the Internal Revenue Service web site at www.irs.gov. You can also download Form SS-4, Application for Employer Identification Number, from the same web site. Once you've completed the form, call the IRS at the number assigned to your region. Either way, your FEIN will be assigned to you, and you can begin using it immediately.

What do I use my FEIN for? Your FEIN identifies your business on your federal income tax returns, including payroll returns. Provide your bank with the FEIN when you set up your account. Use your FEIN on all documents relating to corporate business.

Originally published December 2003.

Last update: January 8, 2011