What is an FEIN?
An FEIN is a Federal Employer Identification Number, sometimes referred to as a Tax ID. In essence, an FEIN performs the same role for a business that a social security number performs for an individual: It provides a way for the IRS (and other organizations) to keep track of you.


Who Needs an FEIN?
You'll need to get an FEIN for your business if you:

• Are a sole proprietor with employees.
• Are a C-Corp, S-Corp, LLC, or partnership.
• Are required to file an Alcohol, Excise, or Tobacco and Firearms tax return.
• Plan to open a Keogh, SEP IRA, or SIMPLE IRA.
  

Action Steps

1. Visit irs.gov.
   
2. Click the link on the left for "Online EIN Application."
3. Answer the questionnaire. (Won't take more than 10 minutes.)
4. Print out the confirmation page (which has your new FEIN) and save it in a safe place.

Final Thought:
Even if you are a sole proprietor and are not required to get an FEIN, it might still be a very good idea. Many forms that you'll have to fill out over the years for your business ask for your FEIN, and if you don't have one, you have to write in your Social Security Number (thereby providing countless people with access to rather personal information).