What is A Federal Tax ID Number?
A federal tax id number is a tracking number that the IRS issues for all new organizations that are established in the United States of America. These numbers are usually issued for new business establishments, Trust, and Estates. The number primary uses for mainly for reporting taxes on your new establishment. more info here
How to get a federal tax ID number
You can take many ways for obtaining a FEIN. One of the first ways you can take is by completing an IRS SS4 form and submitting it to the IRS, this process can take a few weeks and if the form is filled out incomplete or incorrectly, your federal tax ID number may be declined. Another option is by calling the IRS directly and requesting a federal tax ID number, this process is easier, but most people do not like talking with the IRS. The other option you can take is by using a 3rd party service provider that will often times charge a fee, this process can speed along the process and help you obtain your FEIN is a few days and in some cases a few hours.
Do I need a federal Tax ID number?
If you are planning on opening a legitimate business in the United States of America, then you will most likely need to obtain a tax ID number. There are some situations were you do not need to have a one. If you are a sole owner (sole Proprietorship) you can uses your social security number. (the only con with doing this is that if your business starts to grow and you need to hire employees than you will have to apply for an identification number, so you might as apply for one sooner than later.
What Do I do With a Federal Tax ID number?
Now that you have received it you are able to take the first steps in establishing your new business and going to your local financial institution and opening up your new business account. You can also apply for credit with your newly established business.