Why You Need to Know the Difference Between FEIN and Tax ID

Essentially, a FEIN and a tax ID number are the same. It is important to learn the small differences between the two so that you know what to do for your business or an entity such as a trust. When filing for a Trust tax ID Number or FEIN, knowing what each is for helps you to make the right decision when filing. The experienced associates at IRS-EIN-Tax-ID can help. 

A FEIN is a Federal Employee Identification Number and an EIN is an Employee Identification Number. Both numbers can be used to identify a business. The federal government does not recognize a FEIN and this number would not be used for federal tax filing. 

Small businesses will need to apply for a FEIN-EIN whether they have employees, or they do not. Having this number helps to avoid identify theft and protect the privacy of the business. 

To be able to report taxes to the IRS, a business must have a tax ID number. When you are the business owner, it is important to file for a tax ID or EIN to have this nine-digit identification number as it is required. A business also needs this number to be able to get a bank account or apply for credit for the business. 

The filing is easy when you take advantage of online service options. An application for an EIN can be completed online via IRS-EIN-Tax-ID.com. At the site, easily find the application for your business needs and fill out the appropriate paperwork. Once completed, you will need to hit the submit button. 

After your EIN has been assigned, the number will be emailed to you. Once you have the number, you will be ready for tax filing purposes as well as accessing lines of credit for your business, opening a checking account and more. 

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