What is a FEIN, Exactly?
The simplest explanation is this: a FEIN is the government’s unique way of identifying your business for tax purposes. The tax id number for your business is assigned by the IRS in order to assist federal agencies responsible for the regulation of business to identify your business and ensure that you are paying taxes on your revenues. For sole proprietors, the added benefit is this: your clients and customers never have access to your social security number when they are billed. Your social security number stays private and secure. Further, there are some banks, financial institutions and merchants that require a tax ID number before you can do business with them. Obtaining your tax ID is not a painstaking bureaucratic process; it’s relatively easy and it’s free; so, this writer’s advice is to go ahead and get it. Protect yourself and your personal information. Alright Already. Where Can I Get One? The fastest and best way to get your business tax ID is to file for it online. You can
