What is an Employer Identification Number (EIN)?

Why do I need an EIN number?

Sometimes referred to as an FEIN (Federal Employee Identification Number), an employer identification number is used on all of an employers’ tax filings. An EIN is the way the IRS identifies your business and verifies your activities with federal and state governments, banks, lending offices, and payroll services. Some states issue their own employer identification number as well, but many use the same EIN issued by the IRS.

You may need one to:

• File federal business and employment tax returns
• Hire new employees
• Run payroll and report wages
• Open a business bank account or apply for credit
• Apply for business licenses or permits
• Work with payroll providers, lenders, or government agencies

If you have trouble finding your EIN, check documents such as old tax returns, your business credit report, or payroll paperwork.

Are an EIN and Tax ID the same?

An EIN is a type of tax identification number (TIN), but the two terms aren’t exactly the same. A tax ID, or TIN, is a broad term used to describe several different identification numbers issued by the government for tax purposes. These include Social Security numbers (SSNs), individual taxpayer identification numbers (ITINs), and employer identification numbers (EINs). In short, every EIN is a tax ID but not every tax ID is an EIN.

Is an EIN the same as an FEIN?

Yes, in most cases, the terms EIN and FEIN refer to the same number. FEIN stands for Federal Employer Identification Number, while EIN stands for Employer Identification Number. Both terms are commonly used to describe the IRS-issued number that identifies a business at the federal level.

You’ll often see EIN used as the shorthand, even when someone is referring to a federal employer identification number.

Why use an EIN instead of a Social Security number?

Using an EIN allows business owners to keep their personal and business finances separate. Instead of sharing a Social Security number with banks, vendors, or payroll services, an EIN can be used for business-related activities. This separation can make recordkeeping easier and helps limit how often a personal Social Security number is shared for business purposes.