How to obtain an EIN, is one of the first steps you must take when incorporating a company in the United States. The EIN (Employer Identification Number) is a unique number issued by the IRS that identifies your business for tax purposes, similar to a social security number but for companies.
To obtain it, you must complete form SS-4 and submit it to the IRS. If you have a Social Security Number (SSN), you can easily do this online. If you are a foreign national without a SSN, you must fax or mail the form along with an explanation of the reason.
This procedure is free of charge and essential to open a business bank account, file taxes and hire employees in the USA.
The EIN (Employer Identification Number), also known as Employer Identification Numberis one of the fundamental requirements to legally operate a company in the United States.
Issued by the Internal Revenue Service (IRS), this nine-digit number functions as a tax identifier for business entities, similar to a social security number for an individual.
Any company wishing to open a bank account, file federal taxes, hire employees or establish business relationships with suppliers in the U.S. needs an EIN.
Also foreign entrepreneurs not residing in the country must obtain one if they wish to register an LLC, a C-Corp or any other U.S. business entity.
Any company wishing to open a bank account, file federal taxes, hire employees or establish business relationships with suppliers in the U.S. needs an EIN. Even foreign entrepreneurs not residing in the country must obtain one if they wish to register an LLC, a C-Corp or any other U.S. business entity.
Although its name suggests that it is only for employers, the EIN is not limited to companies with employees. In fact, a large number of companies without employees, such as freelancers, consultants, digital businesses and foreign startups, use it solely for tax and banking purposes.
The process for obtaining an EIN may seem simple on paper, but when the applicant is foreign national or no social security number (SSN)the complexity increases. It is not possible to apply online in such cases, forcing you to submit forms by fax or mail, or even contact the IRS directly by phone.
In addition, making errors on the SS-4 form may cause delays, rejections and difficulties with opening bank accounts or receiving payments from U.S. customers.
Therefore, in this complete guide we will explain:
- What is the EIN and what is it really for?
- Who needs it and when?
- What are the application methods available?
- How to obtain it step by step as a foreigner?
- Common mistakes to avoid.
- And practical advice from the experience of a tax consulting firm that has helped dozens of international entrepreneurs successfully obtain an EIN.
What is the EIN and why does your company need it?
The EIN (Employer Identification Number) is a tax identification number issued by the Internal Revenue Service (IRS) of the United States. It has a nine-digit structure (for example: 12-3456789) and is used to legally identify a business entity to the federal tax system. It is, in simple terms, the business equivalent of the social security number (SSN) for individuals.
Although it is called an “employer number,” the EIN is not reserved only for companies with employees. Any entity that conducts business within the United States or has tax obligations with the IRS will need this number to formally operate.
How to obtain an EIN and who needs it?
The need to obtain an EIN does not only apply to large companies or companies with employees. It is intended for:
- LLC (Limited Liability Company): including single-member LLCs.
- Corporations (C-Corp or S-Corp).
- Partnerships.
- Foreign companies doing business in the U.S.
- Sole proprietorship (Sole proprietorship) wishing to open a business bank account or hire employees.
- Businesses that must file federal taxes or withhold taxes from employees or contractors.
- Non-profit organizations, trusts, estates and other legal entities.
What is the EIN for?
The EIN is required for a variety of fundamental procedures, including:
- Open a U.S. business bank account.
- Filing corporate tax returns.
- Issue tax forms such as 1099 to contractors.
- Hire employees and manage payroll.
- Apply for commercial licenses.
- Record state and local taxes.
- Apply for accounts on platforms such as Stripe, PayPal or Amazon.
- Establish business relationships with U.S. suppliers or customers.
In other words, without an EIN, a U.S. company cannot function fully within the legal framework, even if its operation is 100% remote or international.
Many foreign nationals mistakenly believe that an EIN is only necessary if they are going to hire employees. However, not having an EIN prevents you from opening bank accounts, receiving payments or even filing taxes, which can lead to IRS penalties or business closure.
In the experience of our tax consulting firm, the EIN is the second most important step after the legal registration of the company, and should be handled in advance to avoid operational bottlenecks.
Practical application
A concrete example: A Colombian graphic designer who registered an LLC in Florida to sell online services could not charge his U.S. customers because Stripe required an EIN to validate his account.
Once he got it right, he was able to process payments, issue invoices and take his business internationally without hindrance.
How do you know if you need an EIN?
Knowing whether you need an EIN (Employer Identification Number) is not always obvious at first glance, especially if you are a foreign business owner or self-employed entrepreneur. However, the IRS establishes fairly clear criteria that allow you to determine when it is mandatory to obtain one and in which cases it is optional but advisable.
Cases in which the EIN is mandatory
- Single-member LLCs with no employees: Although it is not federally required if income is reported on the owner’s personal return, most banks and technology platforms require it.
- Freelancers or sole proprietors (sole proprietors only)If they have no employees and use their SSN, they may operate without an EIN. However, using an EIN is preferable to maintain privacy and separate personal and business finances.
- Foreign companies with no physical presence in the U.S.: If they generate U.S.-connected revenue or need to invoice U.S. companies, an EIN is almost always necessary, even without a legal or local presence.
In our tax consulting firm, we always advise to see the EIN not as an administrative burden, but as a access tool:Â opens the door to financial services, protects you legally by separating your personal and business identity, and makes it easier for you to operate globally from a U.S.-registered entity.
Not waiting until the last minute to process it is key. Many business owners register their company and then find out that they cannot open accounts or operate because they do not have an EIN. That’s why, Anticipating this need is a strategic decision.
Practical application
For examplea Peruvian entrepreneur who offered online courses registered its LLC at Wyomingbut did not apply for the EIN right away. Three weeks later, when she wanted to open her Stripe account, she found it blocked. Our team assisted in completing and submitting the SS-4 formAfter obtaining his EIN, he was finally able to start collecting without restrictions.
These types of cases occur frequently, so we always recommend applying for an EIN as part of the initial incorporation process.
Available methods to obtain an EIN
The IRS offers several ways to apply for an EIN, but not all are available to foreign nationals or individuals without a Social Security number (SSN). It is important to know which method is right for you and to avoid mistakes that may delay obtaining the number or invalidate your application.
Ways to apply for an EIN
1. Online Application (IRS EIN Assistant)
It is the fastest method, but only available for individuals with SSN or ITIN. The applicant must be in the U.S. or have a tax presence, and complete an interactive form on the IRS website. The EIN is issued immediately.
âš Not available for foreigners without SSN.
2. By fax
If you are a foreigner or do not have an SSN, you can send the Form SS-4Â The complete form must be sent to the IRS via fax at the fax number:
- (855) 641-6935 (if you are in the U.S.)
- (304) 707-9471 (if you are outside the U.S.)
This method usually takes between 4 and 10 days depending on the volume of applications. It is the most recommended method for foreigners who want to speed up the process without calling by phone.
3. By postal mail
You can mail your SS-4 form to:
- Internal Revenue Service Attn:Â EIN Operation Cincinnati, OH 45999 USA.
This is the slowest method, as it can take 4 to 6 weeks. It is only recommended if you do not have access to a fax or tax consultant.
4. By telephone (only for foreigners)
Foreign applicants may call the IRS directly at the following number +1 (267) 941-1099Monday through Friday, 6:00 a.m. to 11:00 p.m. Eastern Time.
This method allows you to obtain the EIN instantly, but requires fluent English and understand technical tax terms. In addition, you may be asked to fax the SS-4 form during the call.
Common mistakes when applying for an EIN
1. Filling out the SS-4 form incorrectly
It is very common for applicants to make mistakes in key fields:
- Boxes 9a and 10 (type of entity and reason for requesting).
- Box 7a (name of the main responsible person).
- Box 4a (physical address, must be valid and legible).
A typographical error may cause the IRS to reject the application without clear explanations.
2. Send the incomplete form
Failure to submit the signed form or leaving fields blank is grounds for rejection. Even if a single piece of information is missing, the IRS may disregard the application.
3. Confusing the business address with that of the Registered Agent.
Many entrepreneurs put the address of the registered agent in place of the address of the business or principal. The IRS may take this confusion as an inconsistency in structure.
4. Do not use legible formatting
Submitting forms with illegible handwriting or poor quality scans (if using digital fax) may result in delays or loss of the application.
5. Failure to anticipate the need for the EIN
Many people wait until they have a customer or a banking emergency to apply, which delays critical transactions. The EIN should be applied for immediately after registering the company.
Applying for the EIN seems simple, but mistakes are more common than it seems, especially in foreign entrepreneurs who do not know the IRS tax jargon. For this reason, we always recommend getting advice from a tax consultant who will review the SS-4 form before submitting it, or who will manage the entire process on your behalf as an authorized third party.
Recently, a Chilean businessman contacted us after sending the form to the IRS three times without receiving a response. We detected that he had filled out box 9a incorrectly, marking “Other” instead of “Limited Liability Company”. We corrected it, faxed the form with all fields clear and legible, and he obtained his EIN in less than 7 days.
Conclusion
Obtaining an EIN (Employer Identification Number) is not just a technical requirement from the IRS. It is one of the fundamental pillars to operate legally, safely and professionally in the United States, both for local companies and for entrepreneurs and international businesses that wish to expand their operations from outside the country.
Throughout this article we have seen that the EIN is essential for:
- Open commercial bank accounts.
- File federal taxes.
- Invoice legally on global platforms.
- Access to financial and banking services in the U.S.
- Comply with tax requirements in states and municipalities.
- Hiring employees or issuing payments to contractors.
The most important thing to understand is that you do not need to be a citizen or resident to obtain it. Although the process for foreign nationals without a Social Security Number (SSN) involves additional steps, it is entirely possible to do it successfully if you choose the right path: send the right form, through the right channel, and with the right data.
Many times, the difference between a stalled business and one that grows exponentially is having the EIN on time and complying with the requirements from day one. Not having one can prevent you from legally collecting, operating or filing, which can lead to financial delays, lost opportunities or even IRS penalties.
Our advice as a tax consultant: Apply for your EIN as part of your incorporation process, not after.
Having it in hand from the start will allow you to operate freely, scale your business with confidence and build credibility with banks, customers and tax authorities.
“Every great business starts with one decision and one number: the one that connects you to the system and opens the doors to the biggest market in the world.”
