A FEIN and a tax ID are not the same thing, though the terms are often used interchangeably

A FEIN (Federal Employer Identification Number) is a specific nine-digit number issued by the IRS to businesses that have employees. A tax ID is a broader category that includes several types of identification numbers the IRS uses to track different entities. A FEIN is one kind of tax ID, but not all tax IDs are FEINs. The confusion happens because people often say "tax ID" when they mean "FEIN," and because a FEIN serves as a business's primary tax identifier with the federal government.

The practical difference matters when you are filling out forms, opening a bank account, or dealing with the IRS. If a form asks for your "tax ID," it may accept a FEIN, a Social Security Number (SSN), an Individual Taxpayer Identification Number (ITIN), or another type depending on what you are. If a form specifically asks for a FEIN, only that nine-digit employer number will work.

Key Takeaways

  • A FEIN is a nine-digit number for businesses with employees; a tax ID is any identification number the IRS uses, including SSNs and ITINs.
  • You need a FEIN if you have employees, operate as a partnership or corporation, or file certain business tax returns, regardless of whether you are a citizen.
  • You can obtain a FEIN online from the IRS for free, by mail, by fax, or by phone, and the process takes minutes to weeks depending on the method.
  • A FEIN is not the same as a business license or EIN used by your state; the FEIN is federal only.

When you need a FEIN instead of just a tax ID

You must have a FEIN if you operate a business with employees and plan to withhold taxes from their paychecks. The IRS requires this number to track payroll taxes, unemployment insurance, and other employment-related filings. You also need a FEIN if you operate as a partnership, an S corporation, a C corporation, or an LLC with more than one owner, even if you have no employees yet.

Self-employed people who work alone and have no employees can use their Social Security Number as their tax ID on most federal forms. However, some self-employed people obtain a FEIN anyway to keep their business and personal finances separate on tax documents. This is optional, not required.

Non-citizens and non-residents can obtain a FEIN. You do not need to be a U.S. citizen or have a Social Security Number to get one. If you are a non-citizen business owner, a FEIN serves as your federal tax identifier for business purposes.

How to get a FEIN from the IRS

The fastest way to obtain a FEIN is online through the IRS website. You fill out Form SS-4 (Application for an Employer Identification Number) on the IRS.gov portal, and you receive your FEIN immediately upon completion. This method is free and takes about 15 minutes. You can use the FEIN right away, though the IRS will mail you a confirmation letter within two weeks.

If you cannot apply online, you can mail Form SS-4 to the IRS address listed on the form itself. This method takes two to four weeks. You can also fax the form to the IRS fax number on the form, which typically takes one to two weeks. By phone, you can call the IRS Business and Specialty Tax Line and apply over the phone; this also takes about 15 minutes, though wait times vary by season.

You will need basic information to apply: your legal business name, the business address, the type of business structure (sole proprietorship, partnership, corporation, LLC), the reason you need the FEIN (hiring employees, opening a bank account, filing a tax return), and the date you expect to start paying employees. If you are a non-citizen, you will also provide your ITIN or passport number.

FEIN vs. state tax ID and business license

A FEIN is a federal identification number only. It does not replace your state tax ID or your local business license. Many states issue their own Employer Identification Numbers (EINs) or state tax IDs, which are separate from the federal FEIN. Some states require you to register with the state tax authority and obtain a state tax ID before you can hire employees or operate a business.

A business license is a separate document issued by your city or county that gives you permission to operate a business in that location. It is not a tax ID at all, though you may need to provide your FEIN when you apply for one. The three — federal FEIN, state tax ID, and local business license — are distinct and often required together.

What happens if you use the wrong number on a form

If a form asks for a FEIN and you provide your Social Security Number instead, the IRS may reject the form or process it incorrectly. The form may be returned to you with a request to resubmit with the correct number. If the form is processed with the wrong identifier, your business filings may not match your FEIN records, which can cause delays in receiving refunds, processing tax returns, or responding to IRS notices.

If a form asks for a "tax ID" and you provide a FEIN, that is usually correct and will be accepted. The problem arises when you provide a number that does not match the entity type. For example, if you are filing as a corporation and provide your personal Social Security Number instead of your corporate FEIN, the IRS will flag the mismatch.

FEIN and bank accounts

Most banks require a FEIN to open a business bank account, even if you are a sole proprietor with no employees. Some banks will accept a Social Security Number, but many will not. If you plan to open a business account separate from your personal account, obtaining a FEIN first makes the process simpler. You can apply for the FEIN online and use the confirmation number to open the account while you wait for the official letter.

If you are a non-citizen without a Social Security Number, a FEIN is often the only tax identifier a bank will accept for a business account. This is one of the most common reasons non-citizens obtain a FEIN.

Frequently Asked Questions

Can I use my Social Security Number as a tax ID if I have a FEIN?

Yes, you can use either one on most forms, but the form will specify which one it needs. If the form asks for a FEIN, you must provide the FEIN. If it asks for a "tax ID," either number usually works, but check the instructions or call the organization to be sure.

Do I need a FEIN if I am self-employed with no employees?

No, you can use your Social Security Number as your tax ID. A FEIN is optional for solo self-employed people, though some choose to get one to keep business and personal finances separate on tax documents.

How long does it take to get a FEIN?

Online applications are processed immediately. Mail takes two to four weeks, fax takes one to two weeks, and phone applications take about 15 minutes but may have long wait times. You can use your FEIN right away even if you have not received the official letter yet.

Can I get a FEIN if I am not a U.S. citizen?

Yes. You do not need to be a citizen or have a Social Security Number. Non-citizens can obtain a FEIN by providing an ITIN (Individual Taxpayer Identification Number) or a passport number on the application form.

Is a FEIN the same as an EIN?

FEIN and EIN are the same thing. FEIN stands for Federal Employer Identification Number, and EIN stands for Employer Identification Number. The IRS uses both terms interchangeably to refer to the same nine-digit number.