Federal Employer Identification Number (FEIN) is also known as Federal Tax Identification Number. This 9 digit code is used by businesses in order to classify and identify them as a tax payer, for banking services and other official and legal purposes. Businesses with no employees and sole proprietorships may use the Social Security number for tax reporting. But companies with employees must have FEIN or Federal Employer Identification Number. The FEIN will be required in order to open bank and credit accounts, hire employees or set up benefit plans.
If one person owns multiple businesses, each business would be required to have its own FEIN. The FEIN is unique to a business just like Social Security number is unique to an individual.
One can apply for a Federal Identification Number online (preferred method), or on Form SS-4 by phone, fax, or mail. The principal officer, general partner, grantor, owner, trustor etc. must have a valid Taxpayer Identification Number (Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number) in order to use the online application.
Obtaining the FEIN is one of several essential steps one needs to take when establishing a new entity for business. Vcorp Services, LLC will obtain the FEIN on behalf of a client’s company.
In instances where Vcorp Services handles the formation submission, please note the following:
(i) If the client provide information regarding social security number (for owner who is a natural person) or FEIN (for owner who is a corporation or limited liability company), Vcorp will provide the service free of charge.
(ii) If social security number of FEIN is not available, Vcorp will charge $45.00 for the service.
In instances where Vcorp Services does not handle the formation submission, please note the following:
(i) If the client provide information regarding social security number (for owner who is a natural person) or FEIN (for owner who is a corporation or limited liability company), Vcorp will charge $45.00.
(ii) If social security number of FEIN is not available, Vcorp will charge $90.00 for the service.
Immediately upon ordering the FEIN, Vcorp Services will send to the client an email confirming that the order for FEIN has been submitted. Vcorp Services will send a second email to the client as soon as the FEIN information becomes available.
Disclaimer: This post does not constitute legal advice
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