What is EIN? EIN Review, Features

EIN (Employer Identification Number) is an employee identification number, also known as a federal tax number. It is used in the United States. Generally speaking, most businesses or entities need an EIN as an identification number for the IRS so that they can handle tax-related matters. Most companies in the United States need to obtain an EIN when they register and/or start hiring employees. When the number is used for identification rather than employment tax reporting, it is usually called a taxpayer identification number (TIN), and when it is used for reporting employment taxes, it is usually called an EIN.

About EIN

The Federal Tax Identification Number (FEIN) is a tax identification number issued by the IRS to companies. It is a 9-digit code used by the IRS to distinguish different tax entities. All US companies must pay taxes according to the law, so they must also have a corresponding federal tax number. At the same time, without a corporate federal tax number, it will be impossible to open a bank account, file taxes, make deposits or loans, and even more impossible to hire employees and carry out a series of business activities. It is necessary for the operation and development of US companies.

EIN Format

An EIN is usually written as 00-0000000, to distinguish it from a Social Security number which is usually written as 000-00-0000.

Prior to 2001, the first two digits of the EIN (EIN prefix) indicated that the business was located in a specific geographic area. In 2001, each of the 10 regions shown in the figure below could also be assigned an EIN if necessary.

Application Materials

1. Registration certificate of the U.S. company;

2. The business address or registered address of the U.S. company;

3. The purpose of the US company applying for a tax number, such as when a new company starts business or when the company needs to open an account;

4. The industry in which the American company is engaged, such as trade, finance, consulting, wholesale, medicine, construction, etc.;

5. Other circumstances of the company's operation;

6. Detailed information of the company's shareholders and directors;

7. Number of members of the company;

8. Business type and main activities.

How to Apply

1. Apply online on the IRS website;

2. By fax or mail: You can find Form SS-4 [ SS-4 download as pdf ] on the IRS website to apply;

3. By phone: (800) 829-4933.

Application Period

It takes 1 working day for a Chinese individual to apply for a U.S. federal tax ID number (EIN);

It takes about 5 working days for a U.S. individual or company to apply for a U.S. federal tax ID number (EIN).

Target customers

1. Registered company or entity in the United States

If a business or entity meets the following requirements, it needs to apply for an EIN:

1. U.S. Employer Identification Number (EIN) Federal Tax Number;

2. Registered a company or entity in the United States and employed employees;

3. The enterprise adopts the operating form of a joint-stock company or a partnership;

4. Declared any of the following taxes: employment tax, business tax, or tobacco, alcohol and firearms tax (ATF);

5. Withholding tax on income other than wages paid to nonresident aliens;

6. There is a Keogh plan;

7. Directly related to trusts (except certain revocable trusts owned by grantors), individual retirement accounts (IRAs), tax-exempt corporate entities, estates, real estate mortgage investment agencies, non-profit organizations, farmers' cooperatives, retirement plan administrators, etc.

2. Owning a company or entity outside the United States

Companies and entities outside the United States can also apply for an EIN from the IRS. Generally speaking, companies and entities outside the United States need to apply for an EIN number from the IRS if they have income in the United States that needs to be taxed, need to employ staff in the United States, or need to meet the IRS withholding requirements. For example, if a Chinese company has business in the United States and an American company needs to pay the company, then the Chinese company may need to apply for an EIN number.

3. Apply for EIN for Individuals

As an individual, whether you live in the United States or outside the United States, you can apply for an EIN. The business form in the United States includes not only a limited company form, but also a sole proprietorship form (Sole Proprietorship). Individuals can apply for an EIN from the IRS in the form of a sole proprietor. For example, non-Americans need to open a sales account on Amazon or EBAY, and EIN or ITIN (US Individual Tax Number) is a must-have requirement on the website, so applying for an EIN or ITIN is a must.

Validity period

Once an EIN is successfully applied for, it is valid for life. The IRS does not charge any additional fees each year.