A Federal Employer ID Number (FEIN), also known as a Federal Tax ID Number or Employer Identification Number (EIN), is a unique nine-digit number issued by the IRS to identify a business entity for tax and reporting purposes. To operate legally and access various benefits, such as opening a business bank account, different types of entities in the US are required by law to obtain a FEIN. In the meantime, sole proprietors and individuals use FEIN’s equivalent, which is a Social Security Number (SSN).
Many high-risk regulated businesses use FEIN or EIN verification as part of their Know Your Business (KYB) onboarding process to better assess and manage third-party risks that come with potential partnerships and B2B relationships. Ultimately, a FEIN is required for processing payroll, filing federal business tax returns, and meeting employment-related tax obligations. It’s issued once and can’t be changed unless the business requests it due to structural changes.
Try for free 
