A Federal Tax ID is for a business what a Social Security Number (SSN) is for an individual.  A Federal Tax ID is a nine-digit number in the form 12-1234567.  The US Internal Revenue Service (IRS) issues Federal Tax IDs.  The official IRS name for a Federal Tax ID is Employer Identification Number.  This is commonly shortened to EIN or FEIN.

The IRS will issue an EIN to many types of business entities, some of which are:

• Sole Proprietorship
• Partnership
• Corporation
• LLC
• Personal Service Corporation
• Church Organization
• Nonprofit
• Estates
• Trusts
• Cooperatives

• If your business has employees then you need an EIN.
• If your business is a partnership or corporation then you need an EIN.
• Certain types of business entities such as Trusts, Estates, Cooperatives and Nonprofits are also required to have an EIN.
• Most banks require an EIN as a requirement to open a bank account or issue a loan.
• An EIN may be required to get business licenses on all levels of government.
• An EIN may be required to register tax accounts on the state and local levels.

A LLC is a legal business entity based on state law.  The IRS does not consider a LLC to be a legally taxable entity.  A LLC can choose to be taxed on the federal level in a few different ways.

The LLC may choose to be taxed as a Corporation.  If a LLC does not choose to be taxed as a Corporation then the way the income of a LLC gets taxed by the IRS depends on the number of Members in the LLC.  A LLC with more than one Member gets taxed as a Partnership.  A Singe Member LLC gets taxed as a Sole Proprietorship.

The IRS considers a Single Member LLC as a "Disregarded Entity" for income tax purposes.  A Disregarded Entity is a business that is separate from the owner for liability purposes, but it is the same as the owner for income tax purposes.  A Single Member LLC which does not choose to be taxed as a Corporation is a separate entity for liability purposes. A Multiple Member LLC is NOT considered a Disregarded Entity by the IRS for income tax purposes.

The IRS cannot cancel an EIN.  Once an EIN has been assigned to a business entity, it becomes the permanent Federal Taxpayer Identification Number for that entity.  Regardless of whether the EIN is ever used to file Federal tax returns, the EIN is never reused or reassigned to another business entity.

The EIN will still belong to the business entity and can be used at a later date, should the need arise.  The EIN stays with the business at the federal level even after the business has been dissolved at the state level

If you no longer need an EIN, you have to explicitly cancel the EIN with the IRS.

We can get your EIN in most cases on the same day that you place your order.  If you are ready to order an EIN Online now just fill in the form below and press Place Order.  We will get your EIN as quickly as possible.