A unique nine-digit number issued by the IRS to identify a business for tax purposes—similar to a Social Security Number and Individual Taxpayer Identification Number but for companies. It’s required for hiring employees, opening U.S. business bank accounts, filing tax returns, and more.
What is an Employer Identification Number (EIN)?
An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is issued by the U.S. Internal Revenue Service (IRS) to identify a business entity for tax reporting and compliance purposes. Even if you don’t plan to hire employees, an EIN is often essential for conducting business in the U.S.—it’s used when filing federal tax returns, registering for certain state taxes, applying for licenses, and opening U.S. business bank accounts.
For non-U.S. residents who own a U.S. company, obtaining an EIN is a key step after forming the business. Without it, many banks, payment processors, and government agencies will not work with your company. The EIN is also required for payroll tax filings if you hire employees and for corporate filings such as annual returns.
The application process involves submitting IRS Form SS-4. While U.S. residents can often apply online, non-U.S. applicants must typically apply by fax or mail, as the IRS requires additional identification and manual review. If no owner has a U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), the EIN can still be obtained by following the “foreign applicant” procedure.
Having an EIN also simplifies compliance with tax treaties, as it provides the IRS with a clear identifier for your business. In some cases, an EIN is necessary for claiming treaty benefits on forms such as the W-8BEN-E.
In short, an EIN is not just a tax ID—it’s a foundational piece of your company’s U.S. business identity. Without it, operating smoothly in the U.S. market—especially as a foreign-owned business—becomes nearly impossible.
