Federal Tax ID Number – SS4

Federal Tax ID Number
The Federal Tax ID Number is useful for a few reasons. However, the main reason is that it is the primary means for separating you the individual, from your business entity.  No matter whether you file for an LLC or a corporation you will want to have an Federal Tax ID Number or FEIN.  Federal Tax ID numbers are acquired from the IRS using a SS4 form.  We can prepare the form for you, with your help.  When you place your order, you will be able to select a package that includes the preparation of the Federal Tax number.  We will also contact the IRS on your behalf and obtain this number for you.  Prior to this we must get your signature approving this.

Maintaining Corporate Status
To properly maintain the status of your LLC or Corporation you should have a federal tax id number.  It is important because it provides an extra level of separation between your personal assets and the assets of a company.  In some states, it is more difficult than others to “pierce the corporate veil.”  “Piercing the corporate veil” means that the courts have found that you and your company are one in the same, and hence you can be held personally liable for the damages and obligations of your business.

Why is a tax id number used?
The tax id number should be used in all instances that you would normally use a social security number.  If you are going to obtain a credit card, lease a car, rent a building, file taxes, or sign any document requiring a social security number.

What is a FEIN?
A FEIN stands for a “Federal Employment Identification Number” and it is the same thing as a federal tax id number for your business.

Do you have to have employees to get a Federal Tax ID number?
No, you do not need to have any employees to have a federal tax id number or federal employment identification number.  However, if you do have employees there is a lot more responsibility for the owners of the company with the filing of the 940, 941, and state employment tax forms.  You will also be required to maintain strict adherence to witholding requirements for employees tax withholdings.

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