In this country, every individual has a social security number. Businesses, have an equivalent of that, which is the Employer Identification Number, or EIN. Sometimes, it is listed as FEIN, with the F standing for Federal. Lastly, it is also at times referred to as the TIN. This leaves you with a lot of options to search for if you’re going to use an EIN lookup/finder. The number is issued to any business or individual who pays employees who don’t have to pay their own taxes.
EIN Lookup/Finder – What Is the EIN?
Simply put, an EIN is a number made up by nine digits. The IRS creates the number and gives to organizations, including employers, sole proprietors, government agencies, nonprofit organizations, partnerships, estates and trusts, and business entities. The EIN is used by the IRS in order to ensure they can keep track of the taxpayers who have to submit a range of varying types of tax returns specific to their business. For individuals who are listed as employers, they can either ask for an EIN in order to report the taxes that they have withheld for the employees, or they can use their personal social security number. Additionally, credit issuers and credit bureaus can see that an EIN is wholly different from a social security number, something that few people are aware of.
The first time the EIN was made by the Internal Revenue Service was in 1974, they did this because they wanted to make sure employment taxes could be paid in such a way that the taxpayer could be properly identified. The 1954 Tax Code Revision was the first to adopt the relevant provision. By 1961, this was broadened. At that time, officials felt that there should be a visible difference between the EIN and the social security number. The social security number is presented as XXX-XX-XXXX, whereas the EIN is presented as XX-XXXXXXXXX. In other words, anyone should be able to see the difference between a social security number and an EIN with ease. When you use an EIN lookup/finder, in other words, you should not find yourself confused about what you are actually looking at.
The differentiation between the registrations, as explained, is very easy to see. Furthermore, the internet now offers us a range of EIN decoders. These are really useful, as they can tell you exactly where in the country a company you’re looking at is registered in. All you have to do is enter the EIN, and this information will be made available to you.
In summary, an EIN is necessary for any business in order to make sure that they can remunerate their employees. Furthermore, it enables them to file the tax returns for their own business. If they wants to be classed as a nonprofit, an S Corporation, a Corporation, a Partnership, or an LLC, then it is essential that they obtain an EIN number. If a business doesn’t get one, it means that it is a proprietorship. In that case, the owner or operator’s own social security number (SSN) should be listed on tax documents.
