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An FEIN is a nine-digit number assigned by the IRS to businesses for tax identification purposes, making it similar to a Social Security number for a business. Its format is XX-XXXXXXX, is free to obtain, and is probably the same as what people refer to as an EIN. Businesses may also need other tax documents, such as a W-2, which can be prepared using a W2 generator when applicable.
You may be happy if that is all you wanted to know. If you would like to understand the difference between a tax ID number and FEIN, who needs it, and how to register for it, keep reading.
What is FEIN Number?
The term FEIN indicates the Federal Employer Identification Number, which is 9 digits long in the format of XX-XXXXXXX, assigned by the IRS to identify business enterprises in tax returns, and files, and payroll records of businesses.
The number works in the same way as the SSN does for individuals with both used as identifiers for individuals and businesses, respectively. After it has been assigned, the FEIN is associated with the particular company for life. It does not expire, and it will not be reassigned to another business, no matter how long after the original company ceases operations.
One of the most common misconceptions surrounding FEIN is that only companies with employees need to register one. However, in reality, this requirement depends on the type of business, not just on the fact whether it has employees.
Is FEIN Same as EIN?
Yes. The FEIN and EIN are the same.
“EIN” is a shorthand for “Employer Identification Number,” whereas “FEIN” means “Federal Employer Identification Number.” Although “EIN” is used more often, “FEIN” uses the clear term “federal.” Some states may run their own employer ID programs, though.
In terms of EIN and FEIN, the answer to the question “is EIN the same as FEIN or is FEIN the same as EIN” is straightforward: different names, but nine digits stay the same, and the agency that issues them is also the same.
“EIN” will be used on IRS documents while “FEIN” will appear in payroll applications, state regulations, and personal communications.
Is FEIN Same As Tax ID?
An FEIN is a tax identification number, but “tax identification number” is a broad category defined by the IRS as a Taxpayer Identification Number(TIN). Under the broad umbrella of TIN, there are many different types of numbers, one of which is the FEIN tax ID.
FEIN vs. Other Tax Identification Numbers
One of the many types of identification numbers utilized by the IRS is the Federal Employer Identification Number (FEIN/EIN). It is categorized as a Tax Identification Number (TIN). This particular number is used by the government to identify people and businesses for tax purposes.
There are different types of TINs, including the following:
- EIN (Employer Identification Number): This number helps identify various types of organizations such as companies, charities and others which are needed for federal income tax filing purposes.
- ITIN (Individual Taxpayer Identification Number): This is actually a identifier provided to those who need to pay taxes in the U.S. but do not hold a Social Security Number.
- SSN (Social Security Number): Unlike the other identifiers above, it is assigned to people and used by the IRS for reporting salaries and benefits. It is the most common TIN.
- ATIN (Adoption Taxpayer Identification Number): If a child is being adopted when he does not have a Social Security number yet, the ATIN is required.
- PTIN (Preparer Taxpayer Identification Number): Taxpayers need this identifier to get help with tax filing from a tax expert.
FEIN vs. EIN vs. SSN vs. ITIN
Since these terms get thrown around interchangeably, here’s how they actually stack up:
| Term | Who It Identifies | Issued By | Format |
| FEIN | Businesses (federal) | IRS | XX-XXXXXXX |
| EIN | Businesses (same as FEIN) | IRS | XX-XXXXXXX |
| SSN | Individuals | Social Security Administration | XXX-XX-XXXX |
| ITIN | Individuals without SSN eligibility | IRS | 9XX-XX-XXXX |
How Do You Spell FEIN?
F-E-I-N is how it’s spelled and is pronounced similarly to the word “Fein.” It is always written as an acronym and not used as a regular word.
What Is an FEIN Used For?
Your company’s FEIN follows you, attached to virtually all official documents, including:
- Federal tax forms
- Establishing a bank account for a business
- Employment tax documentation – especially W2 form and 941 forms
- Securing business licenses and permits, and credit
- State and local tax registration
It’s worth mentioning the W2 connection specifically, as it is one of the most visible places employees are able to see this number. Every employer must put the FEIN on every W-2 issued in Box b, where IRS can match employment income data to appropriate employers. If you’re an employer seeking to create year-end documents without having to find a way between payroll providers, a W2 generator will do all the work for you once you enter your FEIN, salary, and withholding amounts for all employees. With this method, one can easily create W2 with minimal hassle.
Who Needs an FEIN?
You’re required to have FEIN if your business:
- Operates as a corporation or partnership
- Has employees
- Has a tax-deferred pension plan
- Files employment or alcohol/tobacco/firearms tax returns
- Withholds taxes on income paid to a nonresident alien
You may also need an FEIN if your organization is a:
- Estate
- Trust
- Real estate mortgage investment conduit
- Plan administrator
- Nonprofit
- Farmers’ cooperative
Sole proprietorships that do not hire any employees are considered exceptions when it comes to tax identification number requirements; sole proprietors can use their Social Security numbers. Nonetheless, many sole proprietors opt to obtain an FEIN Federal Employer Identification Number for different reasons, including not wanting to disclose the effective business owner’s personal Social Security number within the documents and increasing ease of obtaining a business bank account. Employers use FEIN for payroll tax management.
Additionally, if a business owner is uncertain about whether to obtain a Federal Employer Identification Number, the IRS can assist him or her in making that decision through a brief questionnaire that determines if an FEIN is required when answering in the affirmative to any of its questions.
How Do You Apply for an FEIN?
The process of obtaining a Federal Employer Identification Number (FEIN) is simple. There are several ways to apply, so you can use whichever method you feel is best for your particular business.
1. Choose an Application Method
To obtain an FEIN, you can use one of the following application methods:
- Online: This is the fastest option and is also available to domestic businesses. You can fill out the online application on the IRS website, and you will receive your FEIN right after you make the application.
- Mail: Applying via mail takes longer than the online or fax methods, with the process taking anywhere from four to six weeks.
- Fax: When applying by fax, you can generally expect to receive your FEIN within approximately four business days.
- Phone: Businesses located outside the U.S. can call the IRS to apply for an FEIN.
2. Collect the Necessary Information
Ensure that you have everything in order before filling out your application. The necessary information includes:
- The name and social security number of the responsible party.
- The type of business and the reason for getting the EIN.
- The date of starting the business.
- The area of work.
3. Know the Daily Application Limitations
The IRS permits only one FEIN for every responsible party in a day. This means that if you have more than one business, you may have to delay in completing your applications one by one.
When Do You Need to Change Your FEIN?
Your Federal Employer Identification Number (FEIN) generally remains unchanged for your company, but there are certain instances where a new FEIN becomes necessary. This situation usually arises when ownership of the firm changes or a company’s structure changes (for instance, transforming a sole proprietorship into a corporation). However, changing only the business name does not require a new FEIN.
If you cannot locate your FEIN number, do not start the process of applying for a new one since the IRS does not recycle previous numbers. Instead, check previous notices, tax filings, as well as past bank documents or directly contact the IRS to check your FEIN.
Is an FEIN Public Information?
For the most part, yes. A FEIN is not treated as a private piece of information compared to a social security number, as it is often shown on publicly filed documents of publicly traded companies and shared online through commercial transactions. However, it is still common sense to share it in limited situations only, as it can be misused in cases of business identity theft.
Final Thoughts
In simple terms, to define FEIN can be boiled down to the fact that the IRS’s way of identifying your business is similar to its identification approach in regard to individuals. The 9-digit number remains the same no matter what type of paperwork is involved, from tax filings to business bank accounts.
If you have an FEIN already, you do not need to spend a lot of time completing it manually every time.
FAQ's
What does a FEIN mean?
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FEIN refers to a nine-digit number that is allocated by the IRS for identification of any business as far as taxes are concerned.
What is FEIN tax ID number, in simple terms?
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It means it is used as an SSN for a business as a unique identification number for identification of tax documents.
Is FEIN the same as federal tax ID?
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Yes. FEIN and EIN are the same; the difference is the use of the term “federal,” which makes it easy to get a better understanding.
Is FEIN the same as tax ID?
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FEIN is only one kind of tax ID. "Tax ID" consists of different types of IDs of taxation.
Is FEIN the same as a federal tax ID number?
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Yes; in practice, people call the FEIN the federal tax identification number.
Do sole proprietors need a FEIN?
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Only if they have employees or meet other specific conditions of the IRS. Otherwise, an SSN may be enough for business identification.
Is an FEIN the same as an EIN tax ID?
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Yes! EIN for tax ID means the same thing as FEIN as nine-digit code for identifying a business by the IRS.
Where do I find my employer's FEIN?
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On the W-2, it is in Box b, placed just before mentioning the address and name of the employer.
What is FEIN meaning in business terms?
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FEIN stands for Federal Employer Identification Number - a special nine-digit tax ID for companies given by IRS.
Where can I get a FEIN for my small business?
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You may get a FEIN from IRS absolutely free through application online, via fax or mail.
What's the difference between FEIN and SSN?
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A FEIN provides businesses with an identification number for tax purposes while an SSN is issued to individuals.
