Comparison Guide

EIN vs Federal Tax ID

EIN and Federal Tax ID refer to the same 9-digit number issued by the IRS. This guide explains why both terms exist and when businesses use each one.

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An EIN and a Federal Tax ID are the same number. Both terms refer to the 9-digit tax identification number (XX-XXXXXXX) issued by the IRS to businesses and other entities. The IRS officially calls it an EIN (Employer Identification Number). People call it a Federal Tax ID because the federal government issues it for tax purposes. One number, two names.

This question generates 40,500 monthly Google searches because business owners meet both terms on different documents. A bank application asks for your "Federal Tax ID Number." An IRS form asks for your "EIN." Both want the same 9-digit number. This guide explains the terminology, the broader US tax ID system, how to apply, and which term to use in each situation so you never wonder again.

The term "Federal Tax ID" is common among first-time business owners. It is also common in everyday business language because "Federal Tax ID" reads as more descriptive than the acronym "EIN." Both terms appear on legitimate business documents. Both refer to the identical 9-digit number.

Fact	Detail
Official IRS name	Employer Identification Number (EIN)
Common name	Federal Tax ID (FEIN, business Tax ID)
Format	XX-XXXXXXX (9 digits)
Issuing authority	Internal Revenue Service (IRS)
Cost from the IRS	$0
Non-resident application	Form SS-4 by fax to 855-215-1627
ein.so price	$49 Standard (4-7 business days) / $97 Express (2-3 business days)

Same Number

Is an EIN the Same as a Federal Tax ID?

Yes. An EIN and a Federal Tax ID are the same 9-digit number issued by the IRS to a business. The IRS issues one federal tax identification number to businesses, and that number is the EIN. The terms are synonymous and interchangeable.

Term	Meaning	Same Number?
EIN	Employer Identification Number	Yes — the official IRS term
Federal Tax ID	Federal Tax Identification Number	Yes — informal but widely used
FEIN	Federal Employer Identification Number	Yes — adds "Federal" for clarity
Business Tax ID	Business Tax Identification Number	Yes — when referring to a business
Federal ID Number	Federal Identification Number	Yes — abbreviated form

All 5 terms above refer to the same 9-digit number from the IRS. Learn more on our what is an EIN page.

Why the IRS Uses "EIN"

The IRS named it the "Employer Identification Number" to identify employers for payroll tax purposes. The EIN is required for all business entities, not only employers. Trusts, estates, non-profits, and single-member LLCs without staff all need EINs. The word "employer" is a historical artifact. It remains the official designation.

Why People Say "Federal Tax ID"

"Federal Tax ID" reads as more intuitive than "EIN" for three reasons:

It names the issuing authority (federal, meaning the IRS).
It names the purpose (tax identification).
It does not imply you need employees, unlike "Employer Identification Number."

Banks, insurers, and vendor managers prefer "Federal Tax ID" because anyone understands it. Both terms are correct.

TIN Umbrella

What Is the Difference Between a Tax ID and an EIN?

A Tax ID (TIN) is the umbrella term, and an EIN is one specific type of Tax ID for businesses. The US tax system uses several identification numbers. The number you provide depends on whether you file as a business, a US citizen, or a non-resident.

Tax ID Type	Full Name	Issued To	Format	Issued By
EIN	Employer Identification Number	Businesses, entities	XX-XXXXXXX	IRS
SSN	Social Security Number	US citizens, authorized residents	XXX-XX-XXXX	SSA
ITIN	Individual Taxpayer Identification Number	Non-residents without SSN	9XX-XX-XXXX	IRS
PTIN	Preparer Tax Identification Number	Tax return preparers	P + 8 digits	IRS
ATIN	Adoption Taxpayer Identification Number	Children being adopted	9XX-XX-XXXX	IRS

When a form asks for your "Tax ID" or "TIN," you provide the number that matches your situation:

Business filing? Use your EIN.
Personal filing as a US citizen? Use your SSN.
Personal filing as a non-resident? Use your ITIN.

The EIN identifies the business. The SSN and ITIN identify a person. A non-resident who needs a personal Tax ID can use the ein.so ITIN service ($197 Standard / $297 Express). For detailed comparisons, see EIN vs SSN, EIN vs ITIN, EIN vs TIN, and FEIN vs EIN.

Side by Side

How Does an EIN Compare to an SSN as a Federal Tax ID?

An EIN identifies a business, and an SSN identifies a US individual, yet both function as federal Tax IDs in their own context. The table below compares the two business-relevant IDs that people confuse most with the EIN.

Attribute	EIN (Federal Tax ID)	SSN	ITIN
Issued by	IRS	Social Security Administration	IRS
Issued to	Businesses and entities	US citizens and authorized residents	Non-residents without an SSN
Format	XX-XXXXXXX	XXX-XX-XXXX	9XX-XX-XXXX
Primary use	Business tax filing, banking, payroll	Personal tax, employment, benefits	Personal tax filing only
Non-resident access	Yes, via Form SS-4 fax	No	Yes, via Form W-7
Cost from the issuer	$0	$0	$0
Online instant issuance	SSN holders only	At SSA office	No, mail only

The EIN is the only number on this list that a non-resident can get without an SSN purely for business use. A non-resident files Form SS-4 and enters a passport number on Line 7b. No SSN or ITIN is needed for the EIN itself. See EIN without SSN for the full method.

How to Apply

How Do You Get a Federal Tax ID (EIN)?

You get a Federal Tax ID by applying for an EIN with the IRS, which charges $0. The IRS offers 4 methods. Non-residents without an SSN use the fax method because the online tool requires an SSN.

Online (Instant)

Use the IRS EIN Assistant at irs.gov, available Monday-Friday 7am-10pm Eastern. This method requires a valid SSN or ITIN and issues the EIN immediately. It is NOT available to non-US residents without an SSN.

Fax (4-7 Business Days)

Complete Form SS-4 and fax it to the IRS at 855-215-1627. This is the primary method for non-US residents. The IRS returns your EIN by fax within 4-7 business days.

Phone (Same Day)

Call the IRS at 267-941-1099 (international) or 800-829-4933 (domestic), Monday-Friday 7am-7pm Eastern. The IRS can issue an EIN during the call. Have all Form SS-4 information ready before you dial.

Mail (4-6 Weeks)

Mail completed Form SS-4 to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. This is the slowest method and is not recommended for time-sensitive applications.

What Non-Residents Enter on Form SS-4

A non-resident enters the US business name on Line 1, the foreign address on Line 4, the responsible party's full name on Line 7a, and a passport number on Line 7b. No SSN or ITIN is required. See the full how to get an EIN walkthrough and the field-by-field SS-4 form guide.

Cost Comparison

The IRS charges $0 for an EIN. Third-party services charge for form preparation and filing assistance, not for the number itself.

Provider	Price	What's Included
IRS (direct)	$0	Self-service application
ein.so	$49 Standard / $97 Express	SS-4 preparation + fax filing
Typical filing services	$65-$200	SS-4 filing, often with upsells

Non-US residents who cannot use the free online tool apply through ein.so for $49. See EIN cost and EIN processing time for full details.

When to Use Which

When Should You Say EIN vs Federal Tax ID?

Say "EIN" when dealing with the IRS, and say "Federal Tax ID" when dealing with banks or vendors. Both terms identify the same 9-digit number, so the recipient understands either one. The context decides which sounds more natural.

Use EIN With the IRS

Use "EIN" when filling out IRS forms such as 1120, 1065, 941, W-2, and 1099, when communicating with the IRS, when registering on irs.gov, and when filing Form SS-4. The IRS uses this term on every document.

Use Federal Tax ID With Banks

Use "Federal Tax ID" when speaking with bank representatives, completing business credit applications, explaining your number to clients, and finishing vendor registration forms. Most banking and procurement systems label the field this way.

Either Term for General Use

Either term works when opening a business bank account, applying for business credit, completing state tax registrations, and setting up payroll. The systems and people involved accept both names without confusion.

Remove All Doubt

When in doubt, say one sentence: "My Federal Tax ID, also called my EIN, is XX-XXXXXXX." This phrasing eliminates ambiguity on any form or call and confirms you mean the federal business number.

A state Tax ID is different. A state issues it for state payroll or sales tax, and it does not replace your federal EIN. A bank asking for a "Federal Tax ID" wants the IRS-issued EIN, not a state number.

What It Unlocks

What Can You Do With a Federal Tax ID (EIN)?

A Federal Tax ID lets a business open a US bank account, accept payments, hire staff, and file federal taxes. For a non-resident, the EIN is the single number that connects a US LLC to the American financial system.

Open a US Bank Account

Banks and fintechs like Mercury and Relay require your EIN to open a business account and issue US account and routing numbers. See EIN for a bank account for the documents and process.

Accept Payments in USD

Stripe, PayPal Business, and similar processors tie a US business account to your EIN. This lets a foreign-owned LLC bill US customers in dollars and settle without forced currency conversion.

File Federal Taxes

A foreign-owned single-member US LLC files Form 5472 with a pro-forma Form 1120 each year. The penalty for not filing is $25,000. Confirm your specific duties with a US CPA.

Stay Compliant

Most US LLCs also report beneficial ownership to FinCEN. Review the BOI filing rules so your new entity stays in good standing after you receive the EIN.

ein.so files the EIN application and does not provide tax advice. Work with a US CPA familiar with non-resident matters for Form 5472 and treaty questions. The EIN is the starting point. See EIN for non-residents for the complete non-resident path.

Common Mistakes

What Do People Get Wrong About the Federal Tax ID?

The most common error is assuming the EIN and Federal Tax ID are two different numbers that require two applications. They are one number with one application. The list below corrects the four mistakes that cost applicants the most time.

Avoid These Federal Tax ID Mistakes

Applying twice because a bank said "Federal Tax ID" and a form said "EIN" — they want the same number.
Trying the IRS online tool without an SSN — it rejects non-residents, who must fax Form SS-4 to 855-215-1627.
Confusing the federal EIN with a state Tax ID — the state number does not replace the IRS EIN.
Using a personal SSN for business invoices instead of an EIN — this exposes your personal identity.

Avoiding these mistakes keeps your application clean and fast. A correctly prepared Form SS-4 returns an EIN in 4-7 business days by fax. An error can push processing into the 4-6 week mail queue. ein.so prepares and faxes the SS-4 to prevent the rejections that cause delays.

Next Steps

Get Your EIN, Get Your Federal Tax ID

EIN and Federal Tax ID are the same 9-digit number in XX-XXXXXXX format.
The IRS officially calls it an EIN; banks and vendors call it a Federal Tax ID.
The IRS charges $0; ein.so charges $49 Standard or $97 Express for non-residents.
Non-residents apply by faxing Form SS-4 to 855-215-1627 with a passport number on Line 7b.

Next steps after you get your EIN:

Open a US bank account — Mercury and Relay accept non-resident LLC owners.
File your BOI report — required for most LLCs, free at fincen.gov/boi.
File Form 5472 — annually for foreign-owned LLCs ($25,000 penalty for non-filing).
Learn the basics — see how to get an EIN, EIN without SSN, and EIN for non-residents.

Stop wondering if they are different. They are not. Get your EIN, and you have your Federal Tax ID.

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Frequently Asked Questions

Is an EIN the same as a Federal Tax ID?

Yes. An EIN (Employer Identification Number) is the Federal Tax ID for a business. When a bank or form asks for a business Federal Tax ID, it wants your EIN. The IRS issues the EIN as the business's federal tax identification number. Both terms describe the same 9-digit number in XX-XXXXXXX format.

What is the difference between a Tax ID and an EIN?

Tax ID (TIN, Taxpayer Identification Number) is the umbrella term covering EINs, SSNs, and ITINs. An EIN is the Tax ID for businesses. An SSN is the Tax ID for US citizens. An ITIN is the Tax ID for non-residents without an SSN. A business Tax ID always means the EIN.

How do I get a Federal Tax ID number?

Apply for an EIN through the IRS. US residents with an SSN apply online at irs.gov for instant issuance. Non-residents submit Form SS-4 by fax to 855-215-1627 using a passport number on Line 7b. The IRS charges $0. ein.so handles the fax process for non-residents for $49 (4-7 business days).

Is a Federal Tax ID number free?

Yes. The IRS issues EINs (Federal Tax IDs) at no cost. The application is free by online, fax, phone, or mail. Third-party services like ein.so charge for Form SS-4 preparation and filing assistance, not for the EIN itself. ein.so charges $49 Standard or $97 Express for non-residents.

Do I need a Federal Tax ID if I already have an SSN?

If you operate a business, yes. Your SSN is your personal Tax ID. Your EIN (Federal Tax ID) is your business Tax ID. Using your SSN for business invoices and vendor forms exposes your personal identity. An EIN separates your business and personal tax identities and reduces fraud risk.

Can non-US residents get a Federal Tax ID?

Yes. Non-US residents obtain an EIN (Federal Tax ID) by faxing Form SS-4 to 855-215-1627 or by calling 267-941-1099. The IRS online tool requires an SSN, so non-residents use the fax method instead. ein.so files the SS-4 for $49 Standard (4-7 business days) or $97 Express (2-3 business days).

What format does a Federal Tax ID / EIN use?

An EIN uses the format XX-XXXXXXX: two digits, a hyphen, then seven digits, for nine digits total. An SSN uses XXX-XX-XXXX. An ITIN uses 9XX-XX-XXXX and always starts with 9. The EIN format is how you confirm a number is a business Federal Tax ID, not a personal SSN.

Does a single-member LLC need a Federal Tax ID?

Yes. A foreign-owned single-member US LLC needs an EIN to open a US bank account and to file IRS Form 5472 with a pro-forma Form 1120 each year. The penalty for not filing Form 5472 is $25,000. Confirm your specific filing duties with a US CPA familiar with non-resident matters.

Is an EIN the same as a state Tax ID?

No. An EIN is your federal Tax ID from the IRS and is used nationwide. A state Tax ID is a separate number issued by an individual state for state payroll or sales tax. Many businesses hold both. A bank asking for a Federal Tax ID wants the federal EIN, not a state number.

Can I use my Federal Tax ID to open a US bank account?

Yes. US banks and fintechs like Mercury and Relay require your EIN (Federal Tax ID) to open a business account. You provide the EIN, your LLC formation documents, and a passport. See our EIN for a bank account guide. The EIN links your business to the US financial system for ACH and wires.

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