The terms Employer Identification Number (EIN) and Federal Employer Identification Number (FEIN) are often used interchangeably because they describe the same thing. The Internal Revenue Service (IRS) uses these nine-digit numbers to identify legal entities such as corporations, partnerships, estates, and non-profits, to track their tax obligations. The difference between EIN vs. FEIN is merely a matter of perspective, and why we use the tax ID number to accomplish any number of tasks.
EIN vs. FEIN
In general, when a tax ID number is used by a business for identification purposes, the number is commonly referred to as a Taxpayer Identification Number, or TIN for short. When a tax ID number is used for reporting employment taxes, we may refer to the tax ID as an Employer Identification Number, or EIN for short.
A Federal Employer Identification Number (FEIN), Employer Identification Number (EIN), and Taxpayer Identification Number (TIN) are all tax ID numbers used by the IRS. They are all nine-digit numbers that are used for tax tracking purposes. There is no fundamental difference between these terms, other than why we use them on various tax documents.
Apply For a Federal Tax ID
If you’re starting a new business it’s likely you’ll need to obtain a tax ID. You can get an EIN online via an EIN application form. Online forms are easier and faster than other application methods. If you get an EIN online you can have your new tax ID number within 24 hours; plus, the tax ID will be delivered directly to your inbox.
You can also apply by mail or by phone, but these application processes can take up to 14 days to complete.
Don’t wait to apply for your federal tax ID. Whether you’re using it to report employment taxes, or simply for identification, you will need this tax ID to grow your business.