What Is FID Number?
FID number stands for Federal Identification Number, also known as an Employer Identification Number (EIN). It is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax and regulatory purposes.
Why Is an FID Number Important?
An FID number is essential for businesses to operate legally in the United States. It is required for:
Who Needs an FID Number?
Any business entity—including corporations, partnerships, limited liability companies (LLCs), and nonprofit organizations—must obtain an FID number. Sole proprietors may also need one if they plan to hire employees or establish a retirement plan.
How to Find or Apply for an FID Number
If a business misplaces its FID number, it can find it on previous tax documents or by contacting the IRS. New businesses can apply directly through the IRS to obtain one, usually via an online or mail application.
FID Number vs. Social Security Number (SSN)
While an SSN identifies individuals for personal tax purposes, an FID number is strictly used to identify businesses. Mixing the two can result in compliance issues or identity confusion.
Key Takeaway
The FID number is a crucial identifier for any business operating in the U.S., ensuring compliance with tax laws and facilitating essential business activities.
