What an EIN is, and why you need it
An Employer Identification Number is the nine-digit federal tax number of a business, written as 12-3456789. Despite the name, you need one even with no employees: to open a bank account, to get paid by US platforms, and to file the company's yearly IRS forms.
The myth: you need an SSN or ITIN first
You do not. The IRS online EIN tool only works for applicants who have a US taxpayer number, which is why many people conclude that foreigners cannot apply. They can: the IRS accepts a signed Form SS-4 from an applicant without an SSN or ITIN. On the line that asks for the responsible party's number, a foreign applicant states that they have none.
An ITIN is a personal tax number for individuals who must file a US tax return. It is not required to own an LLC or to get an EIN, and applying for one first only costs months.
Who is the responsible party?
The IRS wants the name of one natural person who controls the company and its money: in practice the owner, or one of the owners. It cannot be another company or a nominee. That person signs the application.
What goes on the application
- The exact legal name of the LLC, as approved by the state, and the state and date of formation.
- A mailing address, which may be outside the United States.
- The number of members, and what the business does.
- The responsible party and their signature.
Because the IRS asks for the date the company was formed, the application can only go in after the state has approved the LLC.
How long it takes
For a foreign-owned LLC the EIN usually arrives within a few business days of the application reaching the IRS, and longer in busy periods such as January to April. The IRS confirms the number in a letter; keep it, because banks ask for that letter, not just the number.
Using a third-party designee
The form lets the applicant name a third-party designee who may send the application, answer IRS questions about it and receive the EIN. That is how a formation service can take care of the whole process for you while you only sign once.
Frequently asked
How much does an EIN cost?
The IRS does not charge for an EIN. With startyour.llc the application is included in the $40 fee.
Can I apply for the EIN before the LLC is approved?
No. The IRS asks for the formation date, so the state has to approve the company first.
Is an EIN the same as a VAT number?
No. The United States has no VAT. The EIN identifies the company for federal tax purposes; sales tax is handled per state.
This guide is general information, not legal or tax advice. Rules and fees change; check your own situation with a professional.