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. All applications are processed and EINs sent via email the same business day, usually within an hour or less after submitting. If submitted past 7pm EST, the EIN will be processed and delivered on the next business day.
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.
There can be a lot of confusion when it comes time to start your business. When you are looking at getting your business off the ground, learn about the differences between an EIN and an FEIN. It will help you get more comfortable with your paperwork and finances.
What is an FEIN and an EIN?
You might have a question about what is the difference between an FEIN and an EIN. You can relax knowing that there is not too much of a difference between these two numbers. In fact, an FEIN and an EIN are pretty much the same thing.
An FEIN is the Federal Employee Identification Number, while an EIN is the Employee Identification Number. These two numbers can be used to identify a business. There is no such thing as an FEIN in the eyes of the federal government, and it is not used for federal filing purposes.
What Kind of Businesses Need an FEIN and an EIN?
Every small business should get an FEIN-EIN number whether it has employees or not. This is not only a strong practice, but it can also help prevent identity theft and protect your privacy. If you have employees or not, you will want to get this number.
To report payment to the IRS, you will need a tax ID number. As a business owner, you will have two choices – your own Social Security Number and tax ID number or an EIN. For more information, consult a professional on what situations require each number.
An EIN and an FEIN are needed to help you get your business started. Make sure you know about these numbers when it comes time to get your business off the ground. You don’t have to be an expert; even having the slightest bit of knowledge can work in your favor.