Legalzoom Review: EIN Obtainment - Get Employer Identification Number

Are you starting a business and wonder if you need to get an EIN (Employment Identification Number)? Read on my fellow entrepreneur for all the information you want about how to get an EIN number, what it is, its uses and purposes and examples (number of digits and prefixes).

The easiest way to get your EIN number is at Legalzoom.com for only $79. They have helped millions of people like you start businesses correctly.

Take three easy steps to obtain your unique EIN number at Legalzoom. Fill out the simple online form, they review your application for accuracy and completeness, then when deemed proper they submit it to the IRS and then when your number is approved you are sent the final paperwork.

 

What is an EIN?

EIN is an abbreviation for Employer Identification Number, also called Federal Employer Identification Number (FEIN) or Federal Tax Identification Number. No wonder us business owners are confused with so many names for the same thing!

It is a unique number assigned to your business by the IRS Internal Revenue Service for companies operating in the United States.

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legalzoom EIN obtainment start a businessWhat is the Purpose of an EIN?

It is an identification number that is used by the IRS to track your business income and taxes. While its name implies that it is for employers only, Employers Identification Number. The main purpose is to identify your business for tax reporting purposes. It is a form of taxation registration with the US Federal government.

Examples of EIN

EIN numbers are 9 digits in length. The format is as follows XX-XXXXXXX. Sometimes the letter “P” follows the number to indicate it is an employee plan.  The first two digit prefix indicates the geographic area of the company headquarters.  However, since 2001, the IRS has centralized the EIN assignment process so not all new EIN numbers get prefixes. Thus Employer Identification Numbers issued before 2001 may have state specific prefixes.

 

How to Get an EIN or FEIN Number?

I recommend using our preferred small business legal resource Legalzoom to get your EIN Federal Tax ID. It is inexpensive – $79, fast and accurate.  While you can also register yourself and get an EIN number at the IRS government website. I found it difficult and time-consuming so I opted to use the legal services of Legalzoom.  Time is money and I choose to spend my time on activities that build my business – not paperwork.

See the screenshot below of the EIN Obtainment Questionnaire. It asks you to check the options of how your business is owned – Sole Proprietorship DBA, Partnership, LLC Limited Liability Company, S corporation, C corporation or Nonprofit Tax Exempt Organization.

 

Resources:

FAQ – Employer Identification Number EIN

 

get an ein number for your business

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