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What is a Federal Tax Id Number?

by rashid
Professional Tax Preparation


What is a Federal Tax Id Number? An EIN or Employer Identification number is also known as a Federal Tax Identification Number. A federal Tax Id Number is used to identify a business entity.

In the United States of America, each business must have an EIN. EIN number in Virginia. There are many ways an individual can apply for an EIN. Nowadays you may apply for EIN online.

EIN Usage:

EIN (Employer Identification Number) can be used by employers, sole proprietors, corporations, partnerships, non-profit associations, trusts, estates of decedents, government agencies, certain individuals, and other business entities.

HIPAASpcae EIN Lookup:

The HIPAASpace is a public directory of Employer Identification Number (EIN) records. This is used for EIN Lookup and Verification Service. HIPAASpace EIN Lookup allows you to perform free form such as Google-Like. However, they are used for the search of various business entities.


It is absolutely free to obtain an EIN. The IRS (Internal Revenue System) in the United States clears that applying for EIN is a totally free service. However, if someone wants to go through an agency directly, for that he needs to hire a separate entity that will go through the process on his behalf. For this, you may have to pay the service fee.

As Promised this fee is not from IRS (Internal Revenue System). However, the amount you need to pay will varies based on the representative your hire. LLC Formation in California.

When an entity, person, or business owner applies for EIN online. In a short amount of time, He will be able to get his number immediately. Moreover, it’s up to him to use that number to open accounts or to pay other taxes.


Note: Furthermore, An EIN number can only be issue to the owner of each business. However, in case an entity is acting as a business owner, the EIN number will be mail to that business owner. The number cannot be given to any agent because he has no right or ownership to hold EIN.

How to Cancel or Change an EIN:

Just like your SSC (Social Security Number), your EIN (Employer Identification Number) remains with you forever. If an individual wants to close his business, He can easily close his business with the IRS and no other business will ever receive the assigned EIN that you have for your business.

This feature provides you the facility to easily close or open business any time you want. You will receive the same EIN number. However, you need to close your business with the IRS before you ever used it.

If you decide to reopen your business it will be like you are going to open a completely new business and you will receive a new EIN number.

Well technically, you cannot change your EIN or Employer Identification Number. But there are some situations where you can change or add an additional number. Following are some conditions:

  • Changing your Business Structure
  • Filing Bankruptcy
  • Thinking about retirement plan
  • Trying to merge your business with another


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