A FEIN, or Federal Employer Identification Number, is the nine-digit number the IRS assigns to a business, nonprofit, estate, trust, or other entity so it can file taxes, hire employees, and open financial accounts. It works like a Social Security number, but for an organization. The IRS issues it free of charge, and an online application usually takes only a few minutes.
FEIN, EIN, Federal Tax ID: Same Number
FEIN, EIN, and Federal Tax Identification Number all refer to the same thing. The IRS mostly says “EIN.” Banks and state agencies often say “FEIN” or “tax ID.” Whichever label you see, the number follows one format: two digits, a hyphen, then seven digits (for example, 12-3456789).
A FEIN is not a Social Security number and not an ITIN. Those identify people. A FEIN identifies an entity. Once the IRS assigns one, it stays on record permanently and is never reissued to a different business, even after the original entity closes.
Who Needs a FEIN
The IRS requires a FEIN in more situations than most new business owners expect. You need one if you have employees, will pay employment or excise taxes, or withhold taxes on income paid to a non-resident alien. You also need one to operate any of the following:1Internal Revenue Service. Employer Identification Number
- Partnerships, regardless of whether they have employees.
- Corporations, from the start.
- Multi-member LLCs. Single-member LLCs need one if they hire employees, file excise tax returns, or elect corporate taxation.
- Tax-exempt organizations, to apply for exempt status and file annual returns.
- Most estates administering assets and trusts distributing income. Certain grantor-owned revocable trusts are an exception.
- Retirement plans and IRAs that file their own returns.
Sole proprietors without employees can use their Social Security number for tax purposes and skip the FEIN. Many get one anyway, because putting a FEIN on a W-9 instead of an SSN keeps that personal number off every client’s file and cuts identity-theft exposure.2Internal Revenue Service. Businesses with Employees
How to Get One
Applying is free. The IRS charges nothing, and no third party has to be involved. Before you start, gather the entity’s legal name, the type of entity, your reason for applying, and the name and SSN or ITIN of the responsible party. The IRS defines the responsible party as the individual who ultimately owns or controls the entity and can direct its funds and assets.3Internal Revenue Service. Responsible Parties and Nominees
Online
The fastest route is the IRS online application at irs.gov, which issues the FEIN immediately after approval. The tool runs Monday through Friday from 6:00 a.m. to 1:00 a.m. Eastern, Saturdays 6:00 a.m. to 9:00 p.m. Eastern, and Sundays 6:00 p.m. to midnight Eastern. To qualify, your principal place of business must be in the United States or a U.S. territory, and you need the responsible party’s SSN or ITIN. The IRS limits online applications to one per responsible party per day.4Internal Revenue Service. Get an Employer Identification Number
Fax, Mail, and Phone
If you can’t apply online, you can fax a completed Form SS-4 to 855-641-6935. Include a return fax number, and the IRS sends the FEIN back in about four business days. Mailing Form SS-4 to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999 is the slowest option, at roughly four weeks.1Internal Revenue Service. Employer Identification Number
International applicants whose principal place of business is outside the U.S. cannot use the online tool. They can call 267-941-1099 Monday through Friday, 6:00 a.m. to 11:00 p.m. Eastern, or submit Form SS-4 by fax or mail.1Internal Revenue Service. Employer Identification Number
Skip the Paid Sites
Third-party websites often mimic official IRS pages and charge anywhere from $50 to several hundred dollars to “file” your EIN application. The IRS provides the number itself at no cost. If someone charges a fee, that fee is for their time, not for the number. Start at irs.gov and apply directly.
What You Get and Where You’ll Use It
Online applicants see the FEIN on screen right away and can use it immediately on tax forms, bank applications, and licensing paperwork. The IRS also mails a confirmation notice called CP 575 to the address on the application. That letter lists the FEIN, the business’s legal name, the filing address, and the specific federal tax forms your entity is required to file. Keep it; banks and state agencies sometimes ask to see it as proof.
Your FEIN is required to open a business bank account, which is how you keep personal and business finances separate. It appears on every federal tax return you file, every W-2 you issue, and every 1099 a client sends you. State and local licensing offices almost always ask for it too.
When a New FEIN Is Required
A name change or an address change does not require a new FEIN. A sole proprietor who rebrands, a corporation that moves, or a partnership that changes its name all keep the same number. For those updates, file Form 8822-B.5Internal Revenue Service. When to Get a New EIN
You do need a new FEIN when a change in structure or ownership creates a fundamentally different entity. The rules run by entity type:
- Sole proprietors need a new FEIN if they incorporate or form a partnership.
- Corporations need a new FEIN if they receive a new charter from the secretary of state, change to a partnership or sole proprietorship, or merge to create a new corporation.
- Partnerships need a new FEIN if they incorporate, if one partner takes over and operates as a sole proprietor, or if the partnership ends and a new one begins.
- LLCs need a new FEIN if they terminate the LLC and form a new corporation or partnership, or if a single-member LLC begins filing employment or excise taxes.
Buying an existing business can trigger the same requirement. Purchasing a sole proprietorship and then incorporating it means a new FEIN. A merger that creates an entirely new corporation means a new FEIN for that entity. A partnership that changes ownership without terminating keeps its existing number.5Internal Revenue Service. When to Get a New EIN
If You’ve Lost Your FEIN
Check the original CP 575 confirmation letter first, then old tax returns and correspondence from your bank. If it’s nowhere, an authorized person from the entity can call the IRS Business and Specialty Tax Line at 800-829-4933, Monday through Friday, 7:00 a.m. to 7:00 p.m. local time. The IRS verifies the caller’s identity before giving the number over the phone. Alaska and Hawaii callers should follow Pacific time.1Internal Revenue Service. Employer Identification Number