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Federal Tax ID Lookup – Tips & Methods
A federal tax ID lookup is a method that is used for searching specific information pertaining to businesses. This search is possible through the use of Employer Identification Number (EIN) or the Federal Tax Identification Number (FTIN) of a business entity. A federal tax ID is a unique numerical identifier issued by the Internal Revenue Service (IRS) to a wide variety of businesses.
Introduction to Federal Tax ID Lookup
Do you own your business in the competitive business world of the US? If so, then you know with whom you are dealing? No matter how efficient you are at doing what you do, there are probably quite a few administrative and regulatory obligations on your business checklist such as registering your company in any state, arranging finances, getting a permit, and a lot more.
One of the pertinent requirements for the newest startups is to obtain an EIN (Employer Identification Number) or Federal Employer Identification Number (FEIN), from the IRS.
Whether you are planning to have a partnership with another company or willing to donate to charity or switch suppliers, you need to check their Federal Tax ID lookup. This unique identification number will provide you the valuable insights into the business you are interested in.
A Federal Tax ID lookup is all it takes to figure out this nine-digit number so that you can check the tax status and the identity of the organization with whom you are planning to do business.
FEDERAL TAX ID LOOKUP FOR THE ORGANIZATIONS
Before finding the methods and tips for finding the federal tax ID for a business entity, you need to understand more about this tax number. It is a method of figuring out the information about the organization’s identity and tax status by using their employee identification number or tax identification number.
This identification number is granted by the IRS to the entrepreneurs as per their business structure. When a company is willing to change their business structure in the competitive business world, you need to issue a new ID number from the IRS as well as the Social Security Administration (SSA).
In fact, the government of the U.S. uses a federal tax identification number for the identification of a company. The ID tax number possesses nine numbers, which is used by the IRS for administering taxes for the following types of business entities-
- Government agency or Trust
- Employer
- Corporation
- Sole Proprietorship
As an owner, grantor or trustee of an organization, you can also apply online or by using the paper form SS-4 for obtaining an EIN number for your business entity. Third-parties applying for this tax ID number will however have to identify themselves as a third-party designee.
HOW DOES EIN DIFFER FROM SSN?
The most common query that new businesses registering in any state in the USA have is related to the difference between an Employer Identification Number (EIN) and a social security number (SSN). The primary difference is that an EIN is a tax ID code for businesses while an SSN is a tax code that helps individuals file their return. The SSN is a nine-digit number and is issued by the Social Security Administration (SSA). The EIN is also a nine-digit number issued by the Internal Revenue Service (IRS).
All types or forms of businesses will be required to file for and obtain an EIN as it will help in identifying a business entity for tax filings. On the contrary, SSN has to be obtained by any individual who is a U.S Citizen or a permanent resident and is employed or receives wages. You are probably asking yourself if there are any specific uses of EIN and how is it different from SSN? An SSN can be used in application processes for Passport, Medicare, Vehicle Registration, Individual bank account, and voter registration among others. Since EIN is meant only for businesses, it can be used for opening bank accounts and applying for business licenses. The EIN also helps entities prevent identity theft while establishing business credit.
WHY IS IT IMPORTANT TO OBTAIN AN EMPLOYEE IDENTIFICATION NUMBER (EIN) FOR YOUR BUSINESS ENTITY?
The simple and straightforward answer to this question is that if you are running a business without any employees then you are not required to obtain an EIN. You can simply use your IRS filing for tax deductions or Social Security number on your tax returns in order to stay away from problems associated with the legal system.
On the other hand, if you are a sole proprietorship but have a Keogh or Solo 401(k) retirement plan, or more than one employee, or you have chosen to change your business structure as either a partnership or a corporation, then you should apply for an Employee Identification Number. Some of the other reasons for applying for an EIN are:
- Filing a firearms tax return
- Introducing a Keogh plan up through the business in question
- Filing a tobacco tax return
If you are still confused about obtaining an EIN for your business entity, then it is always advisable to hire an attorney with experience and knowledge in this sector. Hiring an attorney for your startup not only assists you in understanding the legal obligations of your startup, but it will also aid you in understanding how to file an EIN with the IRS.
Obtain Your Employee Identification Number (EIN) Online!
FEDERAL TAX ID FOR THE SELF EMPLOYED
EIN is an Employer Identification Number that is mandatory for businesses but do self employed professionals or sole proprietorship firms need it? According to Internal Revenue Service (IRS), a sole proprietor or self employed professionals with DBA will not be required to file for EIN if they don’t have any employees and are not filing any pension plan tax returns or excise tax returns. Yet, as a self employed with DBA or sole proprietor, you may require an EIN to fulfill specific purposes. If you are an independent contractor providing personal services then you will be required to provide EIN to your customers.
One of the most important reasons for obtaining an EIN is for opening a business banking account. An EIN is also known as a Federal Employer Identification Number (FEIN) and is used by credit and lending agencies to track business credit of sole proprietors. The advantage of having it means that you will be able to apply for business loans with ease as lenders prefer those with an established or good business credit. As a sole proprietor, having an EIN will enable hiring of employees to have a Solo 401(k) retirement plan or a tax-deferred pension plan like the Keogh Plan.
In the near future, if you want to change the existing type of business entity like your sole proprietorship to LLC or Business Corporation, the Employer Identification Number will make the process easier. It is also important to note that unlike other types of businesses, a sole proprietor or self employed professional will be issued a single Employer Identification Number.
WHAT ARE THE METHODS AND RESOURCES TO LOOK UP FOR A TAX ID FOR A BUSINESS?
Once you understand the importance of obtaining an EIN for your business entity, the next step is to make one aware of the methods and resources for Federal Tax ID Lookup. There are several ways by which you can search for specific Federal Tax ID’s that businesses are operating with. Typically, all professional entrepreneurs and business owners have the tax identification number assigned by the IRS.
Whether you are a vendor who is seeking the tax identification number for your payments reports, or a business owner who has lost his FEIN; you will require specific and detailed information pertaining to the company in order to locate it. Here are some methods, which will help you with federal tax ID lookup for different business entities.
EDGAR (FOR-PROFIT COMPANIES)
The first and foremost resource for finding out the federal tax ID is EDGAR, which is maintained by the US Federal government department of Securities and Exchange Commission (SEC). The database of EDGAR is free of charge and can be used in order to find out the EIN of a business entity which is not even listed in the online SEC filings.
The for-profit business entities use SEC forms 10-k, 10-Q, and 8-K reports for filing the EIN. These forms contain the company’s FTIN. If you want to have a quick Federal Tax ID lookup, you can use EDGAR to look up a FTIN, merely by visiting SEC.gov EDGAR Company Filings page. You will find all relevant forms in the list and the required documents for obtaining the form for your business entity.
For those who want to have the EDGAR filings done by a representative like IncParadise, we can assist you with it.
CHECK WITH IRS DIRECTLY
The IRS is the revenue service of the United States federal government and is directly responsible for issuing the Employee Identification Number to business owners. If you are in a situation where for some reason, you have misplaced your EIN, and are unable to provide your FEIN to investors and vendors; you can always contact the Internal Revenue Service and get it directly from there.
This method is only accessible to the owners of the business entities, trustees, authorized people of the company or an individual with power of attorney and other legal representatives.
FOR NON-PROFIT COMPANIES – MELISSA DATA
Another helpful resource for Federal Tax ID Lookup is the Melissa data, which is an organization that collects and supplies information to businesses. For instance, if you are required to check your former employers, you can easily obtain his tax ID number on one of the W-2 forms of your business entity. All you need to do is to enter the name of the company or zip code into the website of Melissa Data in order to find out the information you want to know about the business entity in question.
REQUEST A REFERENCE LIBRARIAN
With the advancement of technology and network opportunities, the business owners underestimate the importance of their local libraries. If you have to look up an organization’s Federal Tax ID number, then local library references can be a valuable asset. Most of the public and college libraries have a desk of reference, managed by the reference librarians.
You can easily access Federal tax ID lookup for specific business entities. More importantly, reference librarians are specialized professionals who can help you in finding out the specific information, such as a company’s EIN and FTIN details.
ASK THE BUSINESSES
One of the easiest and simplest ways to find a company’s Employer Identification Number or Federal Tax ID is to call the business and ask for it. Most of the businesses will willingly provide you with their EIN if you ask them.
This type of information is considered to be a public record and there’s no reason why a business shouldn’t reveal its data to vendors or investors. This is particularly true for the nonprofit companies. Since the FTIN is often needed for claiming deductions related to tax returns, you will get the information without any legal issues.
FEDERAL TAX ID OR EIN FOR NON-US CITIZENS
Business speaks a global language! If you are not a U.S Citizen and yet as an international entrepreneur, you are thinking of expanding your existing business in the U.S markets, will you be able to apply for an EIN or Federal tax ID?
Yes, you can apply for and obtain an Employer Identification Number (EIN) issued by the Internal Revenue Service (IRS). Some entrepreneurs may think that it is necessary to have a Social Security Number (SSN) to apply for an EIN but that is not the case. You can apply for a business EIN even if you don’t have an SSN or an ITIN.
Do non-US citizens require an EIN? Is it different from a normal EIN?
Every business being formed, incorporated, or established in any state of the U.S needs to have an EIN issued by the IRS. If you are an entrepreneur residing abroad but want to start your business in the U.S then you will need to apply for an EIN. It is not different from the normal EIN although, non-U.S citizens will not be able to apply online for the same.
Can I use my ITIN to apply for EIN?
Yes, you can apply for an Employer Identification Number (EIN) using your Individual Taxpayer Identification Number (ITIN). The advantage of an ITIN is that the process of application becomes simpler and you can apply to the IRS online
How do non-US citizens obtain EIN to start their businesses?
The process of applying for Employer Identification Number (EIN) for non-U.S citizens is almost the same as those of citizens. There are two ways to go about applying for this Federal Tax ID based on specific scenarios and they are:
- If you don’t have an ITIN but want to apply for one then you can first submit Form W7 with the U.S. Internal Revenue Service (IRS). Once you receive your ITIN, you can use it to apply for an EIN online.
- If you are applying for an EIN without an ITIN then you will be required to submit Form SS-4. As a foreign national, you will be able to submit the form through phone, fax, and mail. International entrepreneurs can receive their business EIN by phone if they don’t have any legal residence in the U.S.
DO I NEED TO APPLY FOR A NEW EIN FOR NEW BUSINESS?
If you are planning to start a new business in any U.S state then obtaining an IRS issued Employer Identification Number (EIN) is mandatory. An EIN is not only required by new businesses but also by those existing entities that have or will be witnessing a change in business ownership or structure. Sole proprietors will require an EIN only if they are hiring employees, changing the business structure to an LLC, corp., or have signed in partners to operate as a partnership.
The different types of businesses that will have to apply for and obtain an EIN include Corporations, Limited Liability Companies, Partnerships, Estates, Sole Proprietors, and Trusts. The Internal Revenue Service (IRS) has also provided specific scenarios where-in the above mentioned business entities may not be required to apply for a new Employer Identification Number e.g., if a corporation opts to be taxed as an S Corporation then it will not be required to apply for a new EIN.
If you want to form a business entity and also obtain an EIN then you can opt for our additional services which include an EIN application as part of the incorporation process. We offer a variety of additional services in Nevada that you can choose from depending on specific requirements. Some of the most commonly chosen services include Annual List, EIN, Amendments of Articles, Certificate of Good Standing, Foreign Qualification, DBA – Fictitious Name, S status election, and EDGAR Filing Services among others. You can directly reach out to the IncParadise team for guidance and information on any of these services for all 50 states.
Do I need a new EIN for my LLC?
Limited Liability Companies (LLC’s) are legal business structures governed by the state statutes. If you are planning to form an LLC then the requirements of an EIN will depend on the type of LLC e.g., if the entity is a single member LLC and if you report to the IRS as a “disregarded entity”, you will not require an Employer Identification Number. On the contrary, if a single-member LLC hires employees or reports to the IRS as a corporation or S-Corporation then you will be required to obtain a new EIN.
A single-member LLC will also be required to obtain an EIN if you participate in a Keogh plan or are paying taxes to the ATF (Bureau of Alcohol, Tobacco, Firearms, and Explosives). It is also important to note that a new LLC with multiple owners also known as a multi-member LLC that has been formed under state law will have to obtain an EIN.
Do I need a separate EIN for each business?
There are times when a Limited Liability Company or a sole proprietor may want to start multiple businesses in the same or different industries or specialization. In such a scenario, you can have a single EIN for each of the businesses. It is often recommended though to apply for a separate EIN for each business or each DBA that you may have as it provides higher asset protection if a lawsuit is filed. Secondly, if you have different business types or structures like an LLC as well as a corporation then the tax structure would be different and hence having separate EINs would be beneficial.
Can I transfer my EIN?
There are times when a business may go through structural changes and then there are times when it witnesses ownership changes. According to the Internal Revenue Service, a business entity will have to apply for a new EIN if it undergoes any ownership change and this means transfer of an existing EIN is not possible.
You can now Incorporate your new business in any state!
TIPS FOR FEDERAL TAX ID LOOKUP
By now you have a fair idea about the methods to look-up for a Federal Tax ID and the importance of an EIN to a business entity. If you want specific information regarding various companies, then, here are some helpful tips that will ensure finding the required and relevant information easy and comfortable:
- If you are going to use the EDGAR for Federal Tax ID lookup for different companies, then start your search by using only the first few letters in the company’s name e.g., if the name of the business is Daffodil Enterprises then you can search using “daffodil” or “daffo”. This will help you in getting better results.
- In order to find out the FTN of a company, make sure to ask their accounting department so that you have more information available than anyone else in the company.
- If you are conducting a zip code search using Melissa Data, make sure that you are using the zip code in which the corporate office of the company is located, rather than the local or branch office zip code.
- There is no denying the fact that most of the businesses are registered with the SEC with names that are quite similar to their public name but may not always be an exact match. In such a scenario, you can also research information provided by exchange-traded funds (ETFs), mutual funds including any money market funds, and variable annuity.
These tips will help you in not only saving time but also making the search process easier thanks to accessibility to multiple resources.
A Final Tip for obtaining EIN!
A nine-digit unique Federal Tax ID number also known as the Employer Identification Number (EIN) is recommended to all new business owners for establishing IRS tax filing status, and all the other legal obligations. There are several benefits of obtaining an EIN right from increasing business credibility to opening bank accounts and even asset protection.
If you are looking for guidance related to obtaining an EIN or even performing a federal tax ID lookup then IncParadise offers you a professional team that will be able to answer your query. IncParadise is one of the most reputed agents in the country with a strong experience in different facets of new business formation.
IncParadise only offers help with obtaining a new EIN, but it is not possible to search for the EIN of other companies or your companies through us.