If your business is organized as anything other than a sole proprietorship, you’re going to need to get a tax ID for your business. A tax ID (sometimes referred to as a Federal Employer Identification Number, or FEIN) is analogous to an SSN for an individual.
If your business is a sole proprietorship, an FEIN isn’t required. However, it’s probably a good idea to get an FEIN for your business anyway, otherwise you’re going to have to share your SSN with many of your vendors and customers.
The process for getting an FEIN is quite simple. You have two options:
- Fill out and file Form SS-4.
- Apply for an FEIN online at IRS.gov.
Assuming that you opt for the online application, the entire process takes only a few minutes. You’ll be asked a series of questions about your business, none of which are difficult to answer. (Questions like, “How many owners does your business have?” “What industry is your business in?”)
After completing the survey, you’ll receive a confirmation indicating your new Tax ID. Print out this confirmation, and save it with your other important business documents.
That’s it. Nothing much to it.
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LLC vs. S-Corp vs. C-Corp Explained in 100 Pages or Less
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