A tax identification number, [EIN or Federal Tax ID], is a 9-digit federal number that the government issues to businesses for use in tax circumstances, such as sales or payroll taxes. It’s like your social security number. Follow a business wherever it goes. Many times other companies, such as suppliers or customers, will ask for your EIN in the form of W9, but we will get to this a bit later.
Do I need an EIN for my business?
If you plan to offer products or services that are taxed in any way or if you plan to hire employees at any time, you will need an EIN. The best answer is to be safe and get an EIN when you start a business. There is a checklist below if you want to make sure you need it.
How much?
Nothing unless you mail the form and then only cost the postage.
How do I get an EIN?
There are several ways: (My advice is online. It’s fast and very easy)
- EIN application online
- By phone: (800) 829-4933 from 7 a.m. M. At 10 p. M., Local time, Monday through Friday
- Fax: Submit Form SS-4.
- Mail: Submit Form SS-4. The IRS site has the locations and fax numbers. (Please note that the time frame to receive your EIN in the mail is approximately 4 weeks.)
How do I know if I need to get a new EIN?
I was asked this question in so many different situations that there are too many to list. The IRS has a good list if you want to take a quick look to see if your situation applies. IRS checklist: do I need an EIN?