What is an Employer Identification Number?

What is an employer’s identification number ?

After forming your company and obtaining the Certificate of Formation, your next step will be obtaining your Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, it is a unique nine-digit number issued by the Internal Revenue Service (IRS) to all business entities in the United States for identification and tax filing purposes.

Make sure your LLC is approved before getting an EIN

In case you applied for an EIN and then had your LLC rejected due to a conflict in names, you’ll need to cancel the first EIN application resubmit your LLC filing forms and get a new EIN. It’s important to know that you don’t have to wait until you cancel your first EIN to get a new one, the first EIN that you’ve requested becomes of no value because it’s related to the LLC that wasn’t accepted.

The only exception is in the states of West Virginia and Louisiana, they are the only states in which you need to get an EIN before forming your LLC.

The importance of having an EIN

The same as the Social Security number (SSN) is essential to a US citizen, the EIN is necessary for your company to lawfully carry out any kind of business, and there are only rare situations in which the company doesn’t pay any taxes such as in the case of a holding company.

An EIN isn’t only for companies owned by Americans, but rather all companies in the USA, even the ones owned by Non-US Residents such as E-Commerce, Affiliate Marketing, and all sorts of companies, they all need an EIN to be considered as legal entity that operates within the United States of America.

7 Reasons Why You Need an EIN

An EIN is a necessity for any company, keep in mind when you get your federal tax ID (also called an EIN or FEIN), the ID will be assigned to the legal name of your business entity. You don’t need a separate tax ID for a DBA.

  • registering your account with Amazon FBA, ebay, YouTube
  • applying for business licenses
  • validating your payment gateways for your business
  • filing tax reports
  • opening a business bank account
  • filing tax returns and payments
  • filing state taxes

How to obtain EIN?

The easiest and simplest way to get your Employer Identification Number (EIN) is by hiring us to take care of it for you and your business, simply add EIN obtainment as a service. We’ll acquire your EIN for you in less than 14 business days and we also offer rush delivery in under 10 days for an extra fee.

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Ready to Start Your US Business Today?

Side by side we'll help you start, grow, and manage your company

Launch My Business