Frequently Asked Questions (FAQs)
1.) Is an EIN the same as a Tax ID?
EIN is an acronym for Employer Identification Number which is also known as a Government Tax ID or a Federal Tax ID. The acronym FEIN is also used for Federal Employer Identification Number.
2.) What is an EIN/Tax ID?
An EIN or Federal Tax ID is a unique 9 digit that is formatted like 12-3456789. This number is used by the Internal Revenue Service (IRS) and other federal government agencies to identify a business for tax purposes.
3.) Do I need an EIN?
Employer ID Numbers (EIN) is required for any business which has employees. EIN’s are also required for businesses that are legally formed as a Corporation or a partnership, regardless of if they have employees or not. An EIN is also required for businesses that manufacture or sell Alcohol, Tobacco or Firearms. Other organizations that are required to have an EIN include: Trusts, Estates and Non-Profit Organizations. Even if your business is not required to have an EIN it is often beneficial to obtain one as it allows you to conduct business without giving out your Social Security Number and thus help to protect your identity.
4.) How long will it take to receive my Federal Tax ID/EIN?
Depending on the delivery option selected you will receive your EIN in either 1-2 business days or 60 minutes. Once your EIN is obtained you will receive an email containing your EIN number which you can use immediately to open a bank account, applying for local business licenses and filing tax returns. It can take up to 15 days after receiving your EIN to receive your official documents in the mail from the IRS, which indicates that your ID Number is now in the IRS permanent records.
5.) My business is an LLC but on my form it is listed as a different type, why is this?
LLC’s are a business entity that is not recognized by the IRS and created by state law. As a result the IRS does not have a tax classification for LLC’s and the LLC must be classified under its taxation type of Sole Proprietor/Partnership, Corporation or S-Corporation.
6.) Once I have my EIN do I need anything else to start my business?
Depending on your business there are additional requirements. To learn more about what to consider when starting a business visit the Business Startup Checklist page.
7.) How to start my business?
Use the links below to learn more about starting your business in your state:
How to Form an LLC in Ohio