Small Business Advice Blog
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March 20, 2010
What is an EIN?
A Tax Identification Number, [EIN or Federal Tax ID], is a federal 9-digit number the government issues to companies to use in taxing circumstances such as sales and/or payroll taxes. It’s kind of like your social security number. It follows a business wherever it goes. Many times other businesses such as vendors or customers will ask for your EIN in the form of a W9, but we will get to this a little later.
Do I need a EIN for my company?
If you plan to offer products or services that are taxed in any way or if you plan to hire employees at any point, then you will need an EIN. Best answer is, just be safe and get an EIN when you start up a company. There is a checklist here if you want to be sure you need one.
How much does it cost?
Nothing unless you mail the form and then it only cost the postage.
How do I get an EIN?
There are several ways: (My advice is Online. It is quick and very easy)
- Online EIN Application
- Via Phone – (800) 829-4933 from 7am to 10pm local time Mon-Fri
- Fax – Send the SS-4 form. EIN Fax and Mail Locations
- Mail – Send the SS-4 form. EIN Fax and Mail Locations (Note that the timeframe to receive your EIN via mail is approximately 4 weeks. )
How do I know if I need to get a new EIN?
I have had this question formed in so many different situations there are too many to list. The IRS has a nice list if you want to take a quick look to see if your situation applies. IRS Checklist - Do I need an EIN?
