EIN: Employer Identification Number Definition
What is an EIN? Learn how to apply for an Employer Identification Number and why it is critical for US bank accounts and Stripe access.
Definition
An Employer Identification Number (EIN) is a 9-digit federal tax identification number assigned to businesses by the IRS.
Format: XX-XXXXXXX (same as SSN, but for business entities)
Why EIN is Critical for Non-US Founders
EIN is the gateway document for:
- US Business Bank Accounts: All US banks require EIN to open corporate accounts.
- Payment Processors: Stripe, PayPal, and Paddle require an EIN before activation.
- IRS Compliance: Foreign-owned LLCs must have an EIN for tax filings, such as Form 5472.
- B2B Contracts: US companies often require an EIN on W-9 forms.
EIN vs ITIN vs SSN
| ID | Entity | Who Needs It |
|---|---|---|
| SSN | Personal | US citizens and residents |
| ITIN | Personal | Nonresident aliens with US tax filing |
| EIN | Business | Every US LLC, regardless of owner residency |
How to Apply as Non-US Founder
Option 1: Fax Form SS-4 (Recommended)
- Download IRS Form SS-4
- Complete all fields, following the instructions below.
- Fax to IRS: 1-855-641-6935 (international) or 1-859-669-5760
- Receive EIN via fax within minutes (if calling) or 4-6 weeks (if mailing).
SS-4 Key Fields for Foreign Applicants:
| Field | What to Write |
|---|---|
| 1a | LLC’s legal name (same as Articles of Organization) |
| 3 | Trade name (optional, same as legal name if none) |
| 4 | Executor, administrator, trustee, ” Foreign” |
| 5a-b | US state where LLC was formed |
| 6 | US county where LLC is located |
| 7a | Foreign owner’s name (first, middle, last) |
| 7b | Leave blank or write “N/A” |
| 8a | US state of LLC formation |
| 9 | Tax year end (December 31 for most) |
| 10 | Type of business: 00-0 for LLC |
| 11 | Reason for applying: “Started new business” |
| 12 | Date business started |
| 13 | Employees: “None” if pre-revenue |
| 14 | Estimated wages: 0 if none |
| 15 | First month payroll: “N/A” |
Option 2: Online Application (US Phone Required)
The IRS online EIN application requires:
- US phone number for verification
- SSN or ITIN of responsible party
Not available for non-US founders without US phone.
Option 3: Phone (May Not Work for Non-US)
Call IRS at 1-800-829-4933:
- Hours: Monday–Friday, 7am–7pm local time
- May require SSN/ITIN verification
- Success rate is lower for non-US applicants
After You Receive Your EIN
Save your EIN Confirmation Letter (CP 575 or 147c). This is the official document banks and payment processors require.
You will need EIN for:
- Mercury or Relay bank account opening
- Stripe account verification
- PayPal business account setup
- Filing Form 5472 (if foreign-owned with gross receipts > $20,000)
Related Terms
- LLC: Limited Liability Company, the entity that needs an EIN.
- ITIN: Individual Taxpayer Identification Number for personal taxes.
- Form 5472: IRS informational return for foreign-owned LLCs.
This is a dictionary entry. For full banking guide, see Open US Business Bank Account Without ITIN