According to the Internal Revenue Service (IRS), a tax identification number (also known as an employer identification number) is used to operate a business. This number is used for tax purposes (instead of a social security number) and for payroll related forms. People who are involved in real estate investments, farmer cooperatives and non-profit organizations may also benefit from having a federal tax identification number, according to the IRS.

Applying Online

According to the IRS, a federal tax identification number application can be submitted online. This method is quick, giving the applicant immediate access to a federal tax identification number. After entering business information, the tax identification number is assigned immediately. The business owner should print the page and save for future use. In addition, the IRS will send a formal letter, which contains your federal tax identification number.

Apply by Phone

Another method for getting a federal tax identification number is applying by calling the IRS at 800-829-4933. The office is open 7 am to 10 pm Eastern Standard Time (Monday -- Friday). The IRS office will take down your business information and assign you a number over the phone.

Apply by Fax

According to the IRS, applicants can complete an SS-4 form and fax the document to the IRS. When faxing the form, make sure to include a note with your fax number. After the IRS has approved your application, they will fax back a document containing your federal tax identification number. A formal letter, containing the tax identification number, will also be mailed. This process can take several days.

Applying by Mail

Applying by mail takes approximately four weeks, according to the IRS. Complete the SS-4 form and mail to the address listed on the form. The IRS will review the form and issue a new tax identification number, and mail a confirmation letter to the applicant.

Source:

IRA: Apply for an Employer Identification Number

IRS: SS-4 Form

Doba: The Benefits of Tax ID Numbers