If you are starting a business or filling out tax paperwork, you may be asked for an EIN, sometimes written as FEIN, and wonder what it is. In the United States, an EIN, or Employer Identification Number, is a unique number that identifies a business for tax purposes, much like an identification number for a company rather than a person. It is also called a Federal EIN, or FEIN. Understanding it clears up a common source of confusion. This guide from The Finance Reveal explains what an EIN is, building on our guide to tax basics everyone should understand in the wider Taxes section. This is general education, not tax advice.

What an EIN Is

An EIN, or Employer Identification Number, is a unique number issued to a business in the United States so it can be identified for tax purposes. It functions somewhat like a taxpayer identification number for a business, allowing the tax authorities to recognize the company on filings and other official matters. The terms EIN and FEIN, which stands for Federal Employer Identification Number, refer to the same thing; the F simply emphasizes that it is issued at the federal level.

The reason a business needs an EIN is that many companies must identify themselves separately from their owners for tax and reporting purposes. Businesses with employees, and many other types of entities, use an EIN to handle their tax obligations, open accounts, and meet reporting requirements. Some very small businesses, such as certain sole proprietors without employees, may instead use the owner’s personal taxpayer information, which is why not everyone needs an EIN, a distinction related to the record-keeping our guide to tax record-keeping describes.

Why It Matters and Who Needs One

An EIN identifies a business the way other numbers identify individuals. The table below summarizes the essentials.

An EIN and a FEIN are the same number, used to identify a business on tax filings and official matters, and businesses with employees along with many other entities generally need one. Some very small businesses without employees may use the owner’s personal taxpayer information instead. Because the exact requirements depend on the type of business and where it operates, it is worth confirming whether your situation calls for an EIN. Understanding that an EIN is simply a business’s tax identifier removes much of the mystery from the term, and connects to the wider picture our Making Money section explores for people running a venture.

Frequently Asked Questions

What is an EIN?

An EIN, or Employer Identification Number, is a unique number that identifies a business for tax purposes in the United States. It works like a taxpayer identification number for a company rather than an individual, letting the tax authorities recognize the business on filings and official matters. Businesses with employees and many other entities use one.

What is an FEIN?

An FEIN, or Federal Employer Identification Number, is the same thing as an EIN. The F emphasizes that the number is issued at the federal level. People use the terms EIN and FEIN interchangeably to refer to the unique number that identifies a business for tax purposes. There is no difference between them; they name the same business tax identifier.

Who needs an EIN?

Businesses with employees, along with many types of entities, generally need an EIN to handle taxes, reporting, and official matters. Some very small businesses, such as certain sole proprietors without employees, may instead use the owner’s personal taxpayer information. Because requirements depend on the business type and location, it is worth confirming whether your specific situation calls for an EIN.

Is an EIN the same as a tax ID?

An EIN is a type of taxpayer identification number, specifically the one used to identify a business. The broader term tax ID can refer to several kinds of identifying numbers, including those for individuals. So while an EIN is a tax ID for a business, not every tax ID is an EIN. The EIN is the business-specific identifier used on company tax matters.

The Bottom Line

An EIN, or Employer Identification Number, is simply the unique number that identifies a business for tax purposes in the United States, and FEIN is just another name for the same thing. Businesses with employees and many other entities use it to handle taxes, reporting, and official matters, while some very small businesses without employees may rely on the owner’s personal taxpayer information instead. Because the requirements depend on your business type and location, it is worth confirming whether you need one. Understood plainly, an EIN is a business’s tax identity number, nothing more mysterious than that. For more, see our guides to tax basics and tax record-keeping, and explore the full Taxes section. This article is general information, not tax advice, and tax rules vary by country; the EIN is a United States identifier.