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Frequently Asked Questions
Federal Tax ID / EIN
Is there a difference between an EIN and a Tax ID Number?
The IRS labels this number as many different things; EIN (Employer Identification Number), FEIN (Federal Employer Identification Number), TIN (Tax Identification Number). All serve the same purpose, the identification of your entity on a federal tax level.
What’s the objective of applying for a Tax ID Number?
A TAX ID number, or its correlating verbiage (EIN), is used by the Federal Government for the sole purpose of the recognizing your business with the Internal Revenue Service (IRS).
What if I already have an EIN or Tax ID Number?
If you have previously been assigned a Tax Identification Number by the IRS, we cannot assist you in the application process. You will need to contact the IRS directly to obtain or update your existing EIN.
Why Do I need a TAX ID Number or EIN?
The EIN is issued to individuals owning/managing businesses that:
- Operate as a Partnership, LLC, Corporation, or as a Sole Proprietor
- Have employees
- Withhold employee taxes from wages paid to non-residential aliens.
- File Taxation forms such as: Excise, sales, employment, or Alcohol Tobacco & Firearms.
- Have a tax-deferred pension plan, or KEOGH.
If you identified with any of the above statements, your business will need an EIN.
Tax Identification Numbers are necessary for the following organizations:
- Farmers co-ops
- Real estate mortgage investment conduits (REMIC)
The lists above are by no means all-encompassing, if you have any questions regarding your interests, you should contact a licensed professional.
When should I apply for a new Tax ID Number or EIN?
If the you have purchased an existing business, you may, in some cases, need to apply for a new EIN. If you are only looking to change your business name, address, or add members to your Corporation or LLC, you DO NOT need to apply for a new Tax ID number.
Below are events for each entity type that require applying for a new TAX ID NUMBER.
- A new charter is formed with your Secretary of State
- A legal merger results in a new corporation being formed
- You are a subsidiary of a corporation using the primary corporations EIN, but become a division of that corporation
- You decide to incorporate your business
- You become a Partnership
- You purchase an existing business or inherit a business and want to operate as a sole proprietor. Sole Proprietor EINs are formed directly under an individual’s Social Security Number and cannot be transferred to another individual.
- You incorporate the partnership
- You or your partner loses or hands over their portion of the business and, subsequently, decide to conduct business as a sole proprietor.
- If you close one partnership and decide to begin another one.
- When money from the estate is used to create a trust; that is not an extension of the Estate.
- You act on behalf of the estate that operates a business after the death of the estate holder
- When a trust needs to be changed to an estate
- If the classification or type of trust you previously applied for needs to be amended to a different type of trust
Limited Liability Companies (LLC)
- When you form a new charter with the Secretary of State
- If you decide to incorporate your business
- There are many additional reasons that an LLC would need to apply for EIN; contact the well-trained professionals on this site for additional information.
THE ABOVE INSTANCES ARE NOT INCLUSIVE. IF YOU HAVE QUESTIONS ABOUT YOUR CASE, PLEASE CONTACT A PROFESSIONAL.
How fast can I expect to receive my EIN or Tax ID number?
We offer our customers two service options: STANDARD and RUSH
Standard: Our staff will file on your behalf to obtain your EIN; this could take 1 to 2 business days.
Rush: Our staff will file on your behalf and to obtain your EIN within 60 minutes.
How much do you charge for this service?
Our Standard option is $247 and our Rush option is $297