What You Need to Do When Forming a New Company

New US businesses just starting up need to have the following information from the federal government:

  • US tax ID numbers
  • ITIN number
  • EIN number

These numbers are needed whether the company is setting up in the United States or a foreign country. For further information, you can go to


An EIN is actually an “Employer Identification Number”, and in some cases referred to as FIN or “Federal Tax Identification Number”. This is used to identify a business entity and is issued with the sole purpose for using tax operations and is not required as needed for any other matters such as:

  • Tax lien
  • Closeout or deals
  • Lotteries
  • And others

Questions to answer

To understand if you need or are required to obtain an EIN – you do if you answer “yes” to one or more of the following questions:

  • Do you have people working for you?
  • Is your business an enterprise or association?
  • Do you record any of these assessment forms such as Excise, Employment, or “Alcohol, Tobacco, and Firearms”?
  • Does your business have a Keogh plan?
  • Are you included with any of the types of associations;
  • Involved with Estates?

Difference between Tax ID number and an EIN?

An EIN and Tax ID Number are exactly the same. An EIN is an Employer ID Number. A TIN is a Tax ID Number. A FEIN is a Federal Employer ID number. These are simply different names for the same number.

Process of getting EIN

This is a simple process; there is an online application that can be used when applying for a new Tax ID number from the IRS. You can either do this yourself, sending it into the IRS or you can hire a company that can help you with everything you need for setting up a new business.

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