FEIN and EIN – Are There Differences?
There are some people who get confused when they are told that they need to get EIN. They question whether this is different from FEIN. Another name that the EIN is known for is tax ID. If you would be told that you need this, then you just need to learn how to apply to get it.
Do you realize what an EIN is for? This stands for Employer Identification Number. This is normally applied for by people who would like to open their business for the first time. A lot of people feel that they do not need to get an EIN yet because they are just starting out. People are recommended to get EIN ahead of time. This can be used to apply for a business checking account that can be connected to your business. There is no need to separate your personal funds with your business funds anymore.
One thing that you have to remember is this: a lot of experts say that the FEIN does not exist. The proper way to refer to this is EIN. Do you even know what an EIN is? This stands for Employer Identification Number. There is no need to add the word Federal before the EIN. This EIN is needed by people who are starting out small businesses.
You actually have two options that are available:
- You can use your own SSN or Social Security Number for your business.
- You can apply for an EIN.
You are not recommended to use your SSN because it might get into the wrong hands. The information may become more available when you use it for your business. You can avoid that by getting an EIN instead.
Applying for an EIN is not very complicated. These are some of the tips that you can remember:
- You may want to check the questions that you have to answer ahead of time. There are some forms that are available online. There are also some that you can get from different offices. If you are having a hard time answering the questions, ask the help of a legal adviser.
- Go online and follow the EIN assistant regarding the things that you have to follow to get your EIN. If you are successful in answering all of the questions and providing proper data, the EIN will be sent to you immediately. You can have it sent through your email. You can also print it out. Just make sure that you will keep it in a safe place.
- If you are not a US resident, you would need to find another way to apply for an EIN. You can send the form that you have applied through letter. You can also send the form through fax. The letter may take a lot more time so if you want to get your EIN soon, the fax will be a better option.
Now that you know how to apply for an EIN, you will be able to operate your business in a more effective manner.