EIN (Employer Identification Number)

What is an EIN?

And Employer Identification Number, or EIN for short, is a number assigned by the IRS used to identify businesses with which the agency interacts. It is sometimes called an FEIN, or Federal Employer Identification Number (not to be confused with any state identification numbers your business may have received), or a Federal Tax ID Number.

Do I need an EIN?

Not all businesses are required to hold an EIN, but most are. If any of the following are true, you are required to obtain an EIN:

• Your business has employees.
• Your business is operated as a corporation or partnership.
• You file one of the following:
  • Employment tax return
  • Excise tax return
  • Alcohol, Tobacco and Firearms tax return
• You have a Keogh plan
• You are involved with any of the following types of organizations:
  • Certain types of trusts
  • IRAs
  • Exempt Organization Business Income Tax Returns
  • Estates
  • Real estate mortgage investment conduits
  • Farmers’ cooperatives
  • Nonprofit organizations
  • Plan administrators

While this is quite a comprehensive list—likely more comprehensive than you need—the most common situations are those toward the top of the list: any corporation or any business (including DBAs) with employees will be required to obtain an EIN.

Additionally, some sole proprietors may chose to use an EIN for their business in order to avoid using their social security number in their billing and banking. Independent contractors may use an EIN instead of a social security number on their invoices or on forms such as the Federal 1099 and W9 forms.

How does Click and Inc’s EIN service work?

It couldn’t be easier. We ask you targeted questions about you and your business, and with that information, we draft IRS and file your EIN application. Once filed, we send your EIN right to you. Simple!