How to Get an EIN (Employer Identification Number)?
- JJRB
- 7 days ago
- 5 min read
Although its name suggests it's for employers only, the EIN is not limited to companies with employees. In fact, many businesses without employees, such as freelancers, consultants, digital entrepreneurs, and foreign startups, use the EIN exclusively for tax and banking purposes.
While getting an EIN might appear simple on paper, the process becomes more complex when the applicant is a foreign individual without an SSN. In those cases, you cannot apply online, and instead must submit forms via fax, mail, or over the phone.
Plus, errors on Form SS-4 can lead to significant delays, rejections, or issues opening a bank account or receiving payments from U.S. clients.
That’s why, in this complete guide, we’ll explain:
What an EIN is and what it’s really for?
Who needs it and when?
The different application methods.
How to get it step-by-step as a foreign entrepreneur?
Common mistakes to avoid.
Practical tips from our tax consulting team who have helped dozens of international clients successfully obtain their EIN.
What is an EIN and Why Does Your Business Need One?
The EIN is a nine-digit tax identification number issued by the IRS. It is used to legally identify a business entity under the federal tax system. It is, essentially, the business equivalent of an SSN.
Although it's called an "Employer" Identification Number, you don’t need to have employees to require or benefit from one. Any entity doing business in the U.S. or with tax obligations to the IRS will need an EIN.
Who Needs an EIN?
EINs are required for:
LLCs, including single-member LLCs
Corporations (C-Corp or S-Corp)
Partnerships
Foreign-owned companies doing business in the U.S.
Sole proprietors wanting to open a business bank account or hire employees
Businesses that file federal tax returns or withhold taxes
Nonprofits, estates, and trusts
What is an EIN Used For?
Your EIN is needed for:
Opening a U.S. business bank account
Filing business tax returns
Issuing tax forms like 1099-NEC
Hiring employees and managing payroll
Applying for business licenses
Registering state and local taxes
Creating accounts with Stripe, PayPal, Amazon, etc.
Establishing partnerships with vendors or U.S. clients
Without an EIN, your company cannot fully operate in the U.S., even if your business is 100% online.
Practical Insight
Many foreign entrepreneurs mistakenly believe they only need an EIN if they plan to hire staff. But the reality is that without an EIN, you can’t open a bank account, accept payments, or even file taxes.
In our tax consulting experience, obtaining an EIN is the second most important step after forming your company and should be done as soon as possible to avoid operational delays.
Practical Example
A graphic designer from Colombia formed an LLC in Florida to offer design services online. However, he couldn’t receive payments from U.S. clients because Stripe required a valid EIN. Once he obtained it, he was able to issue invoices, receive payments, and grow internationally
How Do You Know If You Need an EIN?
It’s not always obvious whether you need an EIN, especially for freelancers or foreign entrepreneurs. Fortunately, the IRS provides clear guidelines.
When is an EIN Required?
You must apply for an EIN if your business:
Has or plans to hire employees
Operates as a corporation or partnership
Is a multi-member LLC
Must pay federal income or payroll taxes
Needs to file 1099 forms
Is a trust, estate, or nonprofit organization
You may also need an EIN to:
Open a U.S. business bank account
Apply for a business license
Register for state or local taxes
Use platforms like Stripe or PayPal
Apply for business credit or funding
When Is an EIN Not Required but Still Recommended?
Single-member LLCs with no employees: You might report income on your personal tax return, but banks and payment platforms usually still require an EIN.
Sole proprietors or freelancers: You can use your SSN, but using an EIN helps protect your privacy and keeps personal and business finances separate.
Foreign companies with no U.S. office: If you earn U.S.-sourced income or invoice U.S. clients, an EIN is almost always necessary, even without physical presence.
Consultant Tip
We always tell clients: don’t wait until a payment is blocked or a bank denies you. Apply for your EIN immediately after forming your company to avoid setbacks.
Real Case
A course creator from Peru created a Wyoming LLC but didn’t apply for her EIN. Three weeks later, she couldn’t activate her Stripe account. Our team helped her complete Form SS-4, and she had her EIN in hand within a week.
How to Apply for an EIN
The IRS offers several application methods, but not all are available to non-residents or those without an SSN.
Application Methods
1. Online (IRS EIN Assistant)
Fastest method
Available only for those with a valid SSN or ITIN
The EIN is issued instantly, not available to foreign applicants without SSN
2. By Fax
Foreigners can fax Form SS-4 to the IRS:
From the U.S.: (855) 641-6935
From outside the U.S.: (304) 707-9471
Processing time: 4–10 business days
Best method for foreign applicants without SSN
3. By Mail
Send your completed SS-4 form to:
Internal Revenue Service Attn: EIN Operation Cincinnati, OH 45999 USA
Slowest method: 4 to 6 weeks. Use only if faxing isn’t possible.
4. By Phone (For Foreign Applicants Only)
Call the IRS at +1 (267) 941-1099 (Mon–Fri, 6 AM to 11 PM ET).
Immediate issuance during the call.
Must speak fluent English and possibly fax the SS-4 during the call
Common EIN Application Mistakes
1. Filling Out Form SS-4 Incorrectly
Errors on these lines are common:
Line 9a (Entity type).
Line 10 (Reason for applying).
Line 7a (Responsible party name).
Line 4a (Business address).
Typos can lead to rejection or weeks of delay.
2. Submitting an Incomplete Form
Leaving blank fields or forgetting your signature will cause rejection.
3. Confusing Business Address with Registered Agent Address
The IRS may flag inconsistencies if you list your agent’s address as your main business location.
4. Unreadable or Poor-Quality Fax
Blurry scans, handwriting, or low-quality documents can result in processing delays or denial.
5. Waiting Too Long to Apply
Don’t wait until you need to receive payments or open a bank account. Apply for your EIN immediately after registering your company.
Real Case Example
A business owner from Chile submitted Form SS-4 three times without success. We reviewed his form and discovered he had incorrectly checked “Other” in line 9a instead of “Limited Liability Company.” Once corrected, he received his EIN by fax in under a week.
Conclusion
Obtaining your EIN is not just a bureaucratic step. It’s a foundational piece of your legal and financial identity as a business in the United States.
With it, you can:
Open business bank accounts.
File taxes.
Operate on global platforms.
Access U.S. financial services.
Build business credit.
Hire staff and pay contractors.
Most importantly, you don’t need to be a citizen or resident to get an EIN. Foreigners can apply successfully, if they know the right method, use the correct form, and submit accurate information.
Pro tip:
Get your EIN as part of your incorporation process, not after.
Having it from the start ensures smooth operations, legal compliance, and professional credibility.
“Every great business starts with a decision and a number, the one that connects you to the system and opens the door to the world’s largest market.”
Comments