Federal ID Number

Meaning & Definition

FID/EIN Meaning

A Federal ID Number, or Employer Identification Number (EIN), is a nine-digit identification assigned by the Internal Revenue Service (IRS) to U.S. businesses and entities. The EIN is used for tax-related matters and is comparable to an individual's social security number. Businesses employ this number for tax filing, opening bank accounts, employee hiring, and financial transactions. It holds significant importance as an identifier.