Have you seen the word “FEIN” on a form and wondered what it means? You are not alone. Many new business owners see this word for the first time and feel a little confused.
This guide will explain it in plain, easy words. No confusing tax talk. Just clear, simple answers.
FEIN stands for Federal Employer Identification Number. It is a nine-digit number the IRS gives to a business. It works like a Social Security number, but for a company instead of a person. Businesses use it to pay taxes, hire workers, and open bank accounts. Getting one is free and usually takes just a few minutes online.
Here is what you will learn in this guide:
- What a FEIN really is
- Who needs one
- When a business needs a new FEIN
- How to apply, step by step
- Common mistakes to avoid
- Answers to the most common FEIN questions
Let’s get started.
Table of Contents
What’s FEIN, Exactly?
FEIN stands for Federal Employer Identification Number. The IRS gives this number to businesses. It has nine digits. It looks like this: 12-3456789.
Think of it like this. You have a Social Security number. It follows you your whole life. It shows the government who you are. A FEIN does the same thing, but for a business instead of a person.
Once a business gets a FEIN, it keeps that same number forever. Even if the business closes one day, the number is never given to another business.
FEIN vs. EIN: Are They the Same Thing?
Yes, they are the same thing. This trips up a lot of people, so let’s clear it up right away.
- The IRS mostly calls it an EIN (Employer Identification Number).
- Banks, states, and many forms call it a FEIN (Federal Employer Identification Number).
- Some people just say “tax ID number.”
All three names point to the exact same nine-digit number. If a form asks for your FEIN and another form asks for your EIN, you can use the same number for both.
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What Is a FEIN Used For?
A business uses its FEIN for many everyday tasks, including:
- Filing federal tax returns
- Paying employees and reporting payroll taxes
- Opening a business bank account
- Applying for a business loan or credit card
- Applying for business licenses and permits
Without a FEIN, many of these simple business tasks become much harder, or even impossible.
Who Needs a FEIN?
Not every business is required to have one. Let’s break this down clearly.
You Need a FEIN If:
- You have employees, or plan to hire any
- Your business is a partnership
- Your business is a corporation
- You run a multi-member LLC (an LLC with more than one owner)
- You file certain tax forms, like excise tax or alcohol, tobacco, or firearms returns
- You pay wages to a nonresident alien
- You have a Keogh retirement plan
- You are involved with a trust, estate, or nonprofit organization
You Might Not Need One If:
- You are a sole proprietor with no employees
- You are a single-member LLC with no employees
In these two cases, many business owners simply use their own Social Security number instead. However, many choose to get a FEIN anyway, even when it’s not required. We’ll explain why in the next section.
Why Get a FEIN Even If You Don’t Have To?
Here’s something a lot of guides skip. Even a small, one-person business can benefit from having a FEIN. Here’s why:
- It protects your personal information. You can use your FEIN on business forms instead of your own Social Security number. This lowers the risk of identity theft.
- It builds business credit. Some lenders want to see a FEIN before approving a business loan or credit card.
- It looks more professional. Vendors and clients often see a FEIN as a sign of a serious, established business.
So even a freelancer or solo shop owner might choose to get one, just for the extra safety and credibility.
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When Do Businesses Need a New FEIN?
A FEIN usually stays with a business for life. But certain big changes require a brand-new number. This is one of the most misunderstood parts of the FEIN process.
You typically need a new FEIN if:
- Your business changes from a sole proprietorship to a corporation or partnership
- You buy an existing business and run it as a new entity
- Your corporation becomes a subsidiary of another company
- Your partnership ends and a new one begins
- You create a new corporation after a merger
You usually do not need a new FEIN if:
- You simply change your business name
- You change your business address
- You add new locations under the same business
If you are ever unsure, the IRS website has a tool that walks through your specific situation. When in doubt, it’s worth double-checking rather than guessing, since using the wrong FEIN on tax forms can cause delays.
How to Apply for a FEIN: Step-by-Step
Applying for a FEIN is free and fairly quick. The IRS never charges for this. If a website asks you to pay a large fee just to get a FEIN, be careful, since you can always apply directly with the IRS at no cost.
There are three ways to apply.
1. Apply Online (Fastest Method)
This is the easiest and quickest way for most businesses.
Steps:
- Go to the IRS website and find the EIN application tool.
- Answer questions about your business type and structure.
- Enter your business name, address, and responsible party information.
- Submit the form.
- Receive your FEIN immediately, right on the screen.
Good to know: The online session times out after 15 minutes of no activity, so it helps to have your business details ready before you start.
2. Apply by Fax
Steps:
- Fill out Form SS-4, the official application form.
- Fax it to the correct IRS fax number for your state or country.
- Wait for your FEIN, which usually arrives by fax in about four business days.
3. Apply by Mail
Steps:
- Fill out Form SS-4.
- Mail it to the correct IRS address for your location.
- Wait for your FEIN by mail, which can take up to four weeks.
Quick Comparison Table
| Method | Speed | Best For |
| Online | Same day | Most U.S.-based businesses |
| Fax | About 4 business days | Businesses that prefer paper records |
| Up to 4 weeks | Businesses in no rush, or without fax access |
What Information Do You Need Before You Apply?
Having your information ready ahead of time makes the process smoother. You will typically need:
- Your legal business name
- Your business address
- The type of business entity (LLC, corporation, partnership, etc.)
- The reason you’re applying (starting a new business, hiring employees, etc.)
- The name and Social Security number (or ITIN) of the “responsible party,” which is usually the business owner or a main decision-maker
Common Mistakes to Avoid
Even though the process is simple, small errors can slow things down. Here are mistakes to watch for.
Mistake 1: Paying a third party a large fee. The IRS never charges for a FEIN. Paying a service to file it for you is optional, not required.
Mistake 2: Applying for a new FEIN when you don’t need one. Changing your business name or address usually does not require a new number. Applying again by mistake can create confusing duplicate records.
Mistake 3: Losing your FEIN confirmation letter. The IRS sends a confirmation letter, called the CP 575, after you apply. Keep this letter somewhere safe. Banks often ask to see it when you open a business account.
Mistake 4: Letting the online session time out. Since the online form times out after 15 minutes, gather your business details first so you don’t have to restart.
Mistake 5: Confusing a FEIN with a state tax ID. A FEIN comes from the federal government (the IRS). Many states also require a separate state tax ID number for state-level taxes. These are two different numbers, and you may need both.
FEIN vs. State Tax ID: What’s the Difference?
This is a common point of confusion, so let’s make it simple.
| FEIN | State Tax ID | |
| Issued by | The IRS (federal government) | Your state’s tax agency |
| Used for | Federal taxes, payroll, banking | State income tax, state sales tax |
| Required for | Most businesses with employees | Varies by state |
Many businesses need both numbers. The FEIN handles anything at the federal level. The state tax ID handles anything specific to your state.
Where Can You Find Your FEIN If You Already Have One?
If you already have a FEIN but can’t remember it, check these places first:
- Your original IRS confirmation letter (CP 575)
- Past federal tax returns
- Business bank account paperwork
- Payroll tax forms, like Form 941 or Form 940
- Any business loan or license paperwork
If you truly cannot find it anywhere, you can call the IRS Business & Specialty Tax Line for help.
Frequently Asked Questions
What does FEIN stand for? FEIN stands for Federal Employer Identification Number. It is a nine-digit number the IRS uses to identify a business for tax purposes.
Is a FEIN the same as an EIN? Yes. FEIN and EIN both refer to the exact same number. The IRS usually calls it an EIN, while other forms and agencies often call it a FEIN.
Is getting a FEIN free? Yes. The IRS never charges a fee for a FEIN. If you see a paid service offering to “get” one for you, know that you can apply directly with the IRS for free.
How long does it take to get a FEIN? If you apply online, you usually get your FEIN the same day. Fax applications take about four business days. Mailed applications can take up to four weeks.
Do I need a separate FEIN for each business I own? Generally, yes. Each separate legal business entity needs its own FEIN, even if the same person owns more than one business.
Do FEINs expire or need to be renewed? No. A FEIN does not expire, and it never needs to be renewed. It stays with the business for its entire life.
Can a sole proprietor get a FEIN even if it’s not required? Yes. Many sole proprietors choose to get one anyway, mainly to avoid using their personal Social Security number on business paperwork.
What happens to a FEIN if a business closes? The number is never reused. Even after a business closes, its FEIN stays retired and is never assigned to a different business.
Where do I find my FEIN if I lose it? Check your original IRS confirmation letter, past tax returns, or business bank records. You can also call the IRS directly for help.
Can I use my FEIN instead of my Social Security number on business forms? In most cases, yes. This is one of the biggest reasons small business owners choose to get a FEIN, even when it isn’t required.
Final Thoughts
So, what’s FEIN in simple terms? It is a free, nine-digit number from the IRS that identifies your business, similar to how a Social Security number identifies a person. Most businesses with employees, partnerships, and corporations are required to have one, while sole proprietors and single-member LLCs can often choose to get one for extra protection and credibility.
Applying is simple, and it costs nothing. If your business needs a FEIN, the fastest path is applying online through the IRS website, where most applicants receive their number the very same day.
This guide is for general educational purposes and is not tax or legal advice. For questions about your specific business situation, it’s best to check the current IRS guidelines or speak with a qualified tax professional or accountant.
