A FEIN (Federal Employer Identification Number) is a free nine-digit number issued by the IRS to identify your business for tax purposes — basically a Social Security Number, but for your company.
If you’re starting or running a business in the U.S., you’ll likely need one.
What Is the FEIN Definition and What Does It Stand For?
FEIN stands for Federal Employer Identification Number.
The IRS assigns it as a nine-digit code in this format: XX-XXXXXXX.
You might also hear it called:
- EIN (Employer Identification Number)
- Federal Tax ID Number
- Federal Tax Identification Number
- Business Taxpayer Identification Number (TIN)
All these terms point to the exact same number.
The “Federal” in FEIN simply clarifies it’s issued at the national level — not by your state.
Think of it this way: just as you received a Social Security Number at birth to identify you as an individual, your business receives a FEIN to identify it with the IRS.
FEIN and EIN are completely identical. Don’t let the different labels trip you up — they’re interchangeable in every situation.
Who Needs a FEIN and Which Business Entities Are Required to Have One?
Not every business is legally required to have one — but most are.
These entities must have a FEIN:
- C-Corporations and S-Corporations — always required
- Partnerships and multi-member LLCs — required for IRS reporting
- Nonprofits and certain trusts — needed to apply for tax-exempt status
- Sole proprietors with employees — required before hiring anyone
- Single-member LLCs electing corporate tax status — required
- Foreign companies doing business inside the U.S. — required
- Any business filing excise taxes or employment taxes — required
These entities can skip it — but shouldn’t:
- Sole proprietors with no employees and no plans to hire
- Single-member LLCs with no employees and no corporate election
Even when optional, getting a FEIN is a smart move.
Why? Because it keeps your personal Social Security Number off vendor forms, bank paperwork, and tax documents — protecting you from identity theft.
Quick answer: If your business has employees, operates as a corporation or partnership, or files federal taxes separately — you need a FEIN.
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What Is the Difference Between a FEIN, EIN, SSN, and TIN?
This is where most people get confused. Let’s clear it up fast.
FEIN vs. EIN
These are the same number. Zero difference.
“FEIN” just emphasizes the federal scope. Both refer to the nine-digit business tax ID issued by the IRS.
FEIN vs. SSN
| Identifier | Who It’s For | Issued By |
|---|---|---|
| FEIN / EIN | Business entities | IRS |
| SSN | U.S. citizen individuals | Social Security Administration |
Never use your SSN in place of a FEIN for business purposes — they are not interchangeable.
FEIN vs. ITIN
An ITIN (Individual Taxpayer Identification Number) is for non-U.S. citizens who need to file taxes personally.
A FEIN is for business entities — not individuals.
What is a TIN?
TIN (Taxpayer Identification Number) is an umbrella term.
It covers SSNs, FEINs, and ITINs. Think of TIN as the category — FEIN is one type within it.
Bottom line:
- Need to identify your business to the IRS? → Use your FEIN
- Need to identify yourself personally? → Use your SSN or ITIN
How to Apply for a FEIN — Step-by-Step Through the IRS
The good news? Applying is completely free and takes about 10 minutes online.
Here’s exactly how to do it:
Step 1 — Confirm you’re eligible
Your business must be located in the U.S. or its territories, and you need a valid SSN or ITIN to apply as the responsible party.
Step 2 — Visit the official IRS EIN portal
Go directly to the IRS website. Avoid third-party sites that charge fees — the IRS process is always free.
Step 3 — Select your business entity type
Choose from LLC, Corporation, Sole Proprietorship, Nonprofit, Partnership, Trust, or Estate.
Pick carefully — your entity type affects how your application is processed.
Step 4 — Enter the responsible party’s details
The responsible party is typically the business owner or a principal officer.
You’ll need their full legal name and either their SSN or ITIN.
Step 5 — Complete your business details
Provide:
- Legal business name
- Business mailing address
- Reason for applying (new business, hiring employees, banking, etc.)
- Expected number of employees
Step 6 — Submit and receive your FEIN instantly
Once submitted online, your Federal Employer Identification Number is issued immediately.
You’ll receive a CP 575 confirmation letter — save both a digital and printed copy. Banks, licensing offices, and vendors will ask for it.
For international applicants:
If you don’t have a U.S.-based SSN or ITIN, you cannot use the online portal.
Instead, complete Form SS-4 and submit it by fax or mail to the IRS.
Processing via mail can take four to six weeks — plan accordingly.
Pro tip: The IRS online portal is only available Monday through Friday during specific business hours. Have all your information ready before you start — the session times out.
Where and When Do You Actually Use Your FEIN in Business Operations?
Once you have your FEIN, you’ll use it constantly. Here’s where it shows up:
Tax filing
- File federal and state business tax returns
- Report employment taxes and excise taxes
- Submit quarterly payroll tax forms
Banking and credit
- Open a business bank account — most banks require it
- Apply for business loans or lines of credit
- Establish your business credit profile separately from your personal credit
Hiring and payroll
- Set up your payroll system
- Issue W-2 forms to employees
- File 1099 forms for independent contractors
Licensing and compliance
- Apply for business licenses and permits
- Enroll in employee retirement plans like a 401(k)
- Complete W-9 forms when working with vendors or clients
Business verification
- Pass KYB (Know Your Business) checks
- Satisfy AML (Anti-Money Laundering) compliance requirements
- Confirm business legitimacy to partners, investors, and regulators
Real-world example: Imagine you’re a freelance designer who just formed an LLC. Your first big client sends you a W-9 to fill out. Without a FEIN, you’d have to hand over your personal SSN — putting yourself at risk. With a FEIN, you protect your identity and look more professional.
Does a FEIN Expire, Can It Be Changed, and What Happens If You Lose It?
FEINs never expire.
Once the IRS assigns your Federal Employer Identification Number, it stays with your business permanently — for the life of the company.
When you DO need a new FEIN:
- Your business structure changes significantly (e.g., sole proprietorship becomes a corporation)
- A merger or acquisition creates a new legal entity
- A new partnership is formed
- Bankruptcy proceedings begin requiring a trustee
When you do NOT need a new FEIN:
- You change your business address
- You adopt a new DBA (doing business as) name
- You hire more employees
- You open a new business location
Lost your FEIN? Here’s how to recover it:
- Check your original IRS CP 575 confirmation letter
- Look at a previously filed business tax return
- Review any bank account opening documents
- Call the IRS Business & Specialty Tax Line directly
Privacy consideration:
Your FEIN isn’t completely private. It can appear on:
- SEC filings and public corporate documents
- Business licenses or permits
- W-9 forms shared with vendors
Treat your FEIN as a sensitive identifier — not as secret as your SSN, but not something to broadcast carelessly either.
Quick answer: No, a FEIN does not expire. You only need a new one if your business undergoes a major structural change.
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Conclusion
A FEIN is your business’s permanent tax identity with the IRS — free to get, takes minutes online, and required for almost every serious business activity in the U.S.
Whether you’re opening a bank account, hiring your first employee, or filing taxes, your Federal Employer Identification Number is the foundation it all runs on.
Apply through the official IRS portal today — before your next business milestone demands it.
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