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There are so many steps to starting and running a business that even the smallest tasks you have to complete can feel daunting and overwhelming. Take for example: getting an employer ID number.
A Federal Employer Identification Number (FEIN), also known as a TAX-ID number is a nine-digit number used to identify a business.
So naturally, every business needs an FEIN. If you’re starting a new business, if your business is undergoing changes in ownership or structure, or even if you’re hiring a nanny and need insurance, you will need to obtain an ID number.
But where to begin?? Fortunately, At Berry Insurance, we have helped several of our commercial clients through this process, and the good news is the process is probably much simpler than you might think.
In this article, we’ll explain your options when applying for a TAX-ID number, outline the process, and let you know how to locate your ID number if you already have one.
Table of contents:
How to get an FEIN number:
As we mentioned, every employer needs an FEIN. Without one, you cannot get workers’ compensation, register a vehicle in a business name, sign contracts, file for credit, file taxes, and more. Basically, you can’t be a business at all.
So if you’re starting a business, getting an FEIN number will be one of the first things you need to do.
Fortunately, it is simple to obtain a TAX-ID through a variety of means. Here’s how you can do it:
Apply for a TAX-ID online:
The easiest way to apply for an FEIN is online. In fact, the IRS prefers business owners to use their online system vs. any other method to obtain an ID.
Through the IRS website, you can fully apply for an employer ID. In the past, you would have had to fill out an SS-4 application. Now, the IRS makes it easier to apply through a simple interview-style format.
After you submit the form, the IRS will then deliver your ID number immediately and securely through your email.
Apply for a TAX-ID through mail:
To apply for an employer ID through mail, you will need to fill out and sign an SS-4 form and send it to the IRS at this address:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
You will receive a confirmation of your FEIN through the mail.
If you are applying through mail, be sure to do so several weeks before you need the ID number, since using the postal service will delay the process.
Apply for a TAX-ID through fax:
You can apply for an employer ID through fax by faxing a completed and signed application to 855-641-6935.
Your ID number confirmation will be sent by fax in approximately 4 business days.
Apply for a TAX-ID by phone (if outside U.S.):
If you are located outside the U.S. or U.S. possessions, you can also obtain a TAX-ID through phone by calling the IRS.
You can call 267-941-1099 from 6 a.m. to 11 p.m. Eastern Time Monday through Friday for an FEIN.
A representative will ask you questions about your business and assign you an ID number over the phone.
It may help to fill out an SS-4 prior to making the phone call, since the representative will be using the details from that form to issue you a number.
Keep in mind though, this method is only for those outside of the U.S., so if you are located in the U.S. and attempt to get an ID through the phone, the representative will probably direct you to their online application system.
What information do I need to apply for a FEIN?
When you apply for a TAX-ID, you’ll need to be prepared to provide several pieces of information about your business. Some of these items may include:
- Your business’ legal name
- Your business’ trade name (DBA)
- Number of members
- Business address
- Your social security number
- Date business started
- Closing month of accounting year
- Information about operations and vehicles
If you need more detailed information about how to apply online, or fill out and send a SS-4 form, this IRS document provides detailed instructions.
How can I find my FEIN?
If you’re already an established business, you have an existing FEIN number. But because you don’t have to use it that often, you probably don’t have it memorized like you do your business’ phone number.
So if you need to provide your FEIN number, you may not know where to look to find it.
But not to worry – there are several places you can turn to.
If you have any IRS forms such as confirmation letters or old tax returns, your TAX-ID should be listed on those. It may also be on business loan applications, payroll documentation, or your business credit report.
If you are unable to access any of those documents, you can call the IRS to look up your FEIN.
For more information, visit the IRS’ lost or misplaced EIN web page.
Protect your new business venture
Once you get a TAX-ID, congrats! That means your new business is official.
And if you’re at this stage, it probably also means you're ready to protect your business and employees from all the risks associated with your day-to-day operations.
But before you jump into the quoting process, you probably want to be prepared.
To help prepare you for the business insurance quote process, read this article: What Information do I Need for a Business Insurance Quote?
Want to simplify the process even further? Download the worksheet below to use as you prepare the materials you need to apply for business insurance.
