What is the Application Process to Get an EIN Compared to FEIN?
An Employer Identification Number (EIN) and a Federal Employer Identification Number (FEIN), are used to describe the same thing. The Internal Revenue Service requires a nine-digit number for legal entities like estates, partnerships, non-profits,and corporations to track their tax needs. When comparing the terms EIN and FEIN, the two basically have the same mean and are used to identify an entity by way of business. Filling out an EIN application or FEIN will ensure that an entity is recognized by the IRS correctly.
Comparing the Two
An EIN number is a tax ID number provided by the IRS that is used to report employment taxes. A FEIN is also used to determine tax needs as well as a Taxpayer Identification Number or TIN. There is no major difference between the terms FEIN and EIN, as well as a TIN. All are used on various tax documents of identification needs.
Applying for a Tax ID
If you are starting a new business, you will need a tax ID number. An EIN can be filed for online via an application found at IRS-EIN-Tax-ID. Online forms are much easier to fill out and a quicker form of obtaining your EIN number when compared to other methods.
Applications are processed online and EIN numbers are then sent to the business via email, usually within an hour or so, or at maximum, at the end of the same business day. Applications processed by telephone or mail can take as long as two weeks to complete.
As a startup, you cannot wait this long for the EIN number. This Tax ID number is needed for tax purposes of course but is also required by banks to open lines of credit or business checking accounts. By applying for your EIN online, you have access to the number as soon as possible so you continue with the setting up of your business.