Introduction & Employer Identification Number Essentials
For international founders launching a business in the United States, obtaining an Employer Identification Number (EIN) is a critical milestone. Often referred to as a Federal Tax Identification Number, the EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity. Similar to how a Social Security Number (SSN) identifies an individual US citizen, the EIN identifies your LLC or Corporation for federal tax administration, commercial banking, and payroll operations.
One of the most common misconceptions among global entrepreneurs is that they must possess a US Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) to start a business or obtain an EIN. This is entirely incorrect. The IRS has established clear legal procedures allowing foreign individuals who do not possess, and are not eligible for, an SSN or ITIN to obtain an EIN for their US-registered entity.
Understanding the distinction between these tax identifiers is crucial:
- SSN (Social Security Number): Issued to US citizens, permanent residents, and temporary working residents.
- ITIN (Individual Taxpayer Identification Number): Issued to foreign individuals who have US tax filing obligations but are ineligible for an SSN. It takes 7-10 weeks to process and requires certified passport copies.
- EIN (Employer Identification Number): Issued to businesses. You can act as the "responsible party" for your LLC's EIN application without holding an individual SSN or ITIN.
While the process is free, the application method for non-residents is purely paper-based. Navigating the IRS bureaucracy requires precise form entries and proper fax routing.
An Employer Identification Number (EIN) is your company's primary corporate tax ID.
Crucial Functions of an EIN for Business
An EIN is not merely a formality for tax compliance; it is the operational key that unlocks nearly all commercial activities in the US. You will require your EIN to complete the following setups:
Opening Commercial Bank Accounts
US banks and fintech platforms (such as Mercury, Wise for Business, and standard retail banks) are legally mandated under Customer Identification Programs (CIP) to collect your company's EIN. They use this to verify the corporate identity against IRS database records. You cannot bypass this verification remotely.
Activating Payment Gateways
To accept payments from global clients via Stripe, PayPal, or Shopify Payments, your company must undergo verification. These processors require your EIN to verify your legal business status and issue annual tax reports (Form 1099-K).
Complying with IRS Reporting
Even if your LLC is a single-member entity that pays no federal income tax on remote foreign profits, you are legally required to file annual informational disclosures (Form 5472 and Form 1120 pro-forma). These forms cannot be processed without your EIN.
Securing Wholesale and Resale Certificates
If you are running an Amazon FBA or dropshipping business, wholesalers require a Resale Certificate to exempt you from local sales taxes. States require your federal EIN to issue these state-level certificates.
Step-by-Step IRS Form SS-4 Completion
Because you do not possess an SSN or ITIN, the IRS online application system will immediately block your request. You must complete a paper copy of Form SS-4 (Application for Employer Identification Number) and submit it manually. Every line must be filled out according to non-resident specifications:
Line 1: Legal Name of Entity
Write your LLC's name exactly as it appears on your state-approved Articles of Organization. Include the legal designator (e.g., 'YourCompany LLC'). Do not abbreviate or change spacing.
Line 4a-4b: Mailing Address
Enter your US virtual business address. This is the location where the IRS will mail your official CP 575 approval letter. Ensure the address format is correct, including suite or mailbox numbers.
Line 5a-5b: Street Address
If your virtual address is located outside your state of formation, you must enter your Registered Agent's physical address here to satisfy state registry guidelines.
Line 7a-7b: Name of Responsible Party
Write your full legal name as it appears on your international passport. On Line 7b, where the form requests an SSN, ITIN, or EIN, write the word "FOREIGN". This explicitly informs the IRS agent that you are an international founder ineligible for a US personal tax ID.
Line 8a: LLC Indicator
Check the "Yes" box to indicate that your business entity is a Limited Liability Company.
Line 9a: Type of Entity
Check the box for "Other" and write "Foreign-Owned Disregarded Entity LLC" if you are the sole owner of a single-member LLC. If you have partners, check "Partnership".
Line 10: Reason for Applying
Check the box for "Started new business" and write a brief description of your activity (e.g., 'E-commerce retail sales' or 'Software consulting services').
Sign and Date
At the bottom of the form, print your name, sign it (electronic or handwritten), and write your contact telephone number. Unsigned applications are rejected instantly.
Submitting Your Application via Fax or Mail
Once Form SS-4 is fully completed and signed, you must transmit it to the IRS. For foreign owners without a US presence, the IRS provides two submission channels:
Submission via Fax (Recommended)
Faxing is the fastest and most efficient remote submission method. The IRS maintains a dedicated fax line specifically for foreign applicants located outside the US. You must send your completed Form SS-4 along with a structured Cover Sheet. The Cover Sheet should include your contact details, your digital fax number (to receive the return fax), and a request for the EIN to be faxed back.
The dedicated IRS foreign entity fax number is: +1 (855) 641-6935.
Ensure that you use a reliable digital fax service (such as eFax, Fax.plus, or MyFax) that provides a dedicated incoming fax number. The IRS agent will write your assigned EIN directly on your Form SS-4 and fax it back to your digital inbox.
Submission via Mail
If you do not have access to a digital fax service, you can mail the physical Form SS-4 directly to the IRS office in Cincinnati. However, mailing involves high transit times. The IRS will process your document and mail the official confirmation letter back via standard international mail, which can take between **2 to 3 months** to arrive at your global address.
The mailing address is: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999.
Handling Approval Letters and Typical IRS Delays
Understanding what to expect after submission helps manage project timelines and coordinates banking setups:
The CP 575 Confirmation Letter
The CP 575 is the official document issued by the IRS confirming your EIN. It contains your business name, address, EIN, and your tax filing deadlines. If you applied via fax and requested a return transmission, the IRS will fax you a stamped copy of your SS-4. The original paper CP 575 letter will still be sent to your US business address. You must scan and keep this document safe, as banks and Stripe require it for account setups.
IRS Backlogs and Peak Seasons
Standard IRS processing times for faxed applications range from 15 to 25 business days. However, during peak seasons (such as tax filing season from January to April), processing times can extend to 6 weeks. If the IRS experiences a backlog, calling the IRS directly (via +1 (267) 941-1099) allows you to request your EIN over the phone by verifying your responsible party details.
If the IRS requests revisions, they will send a fax requesting clarification. Ensure your fax service remains active to avoid missing these communications.
Keep a high-resolution scan of your IRS CP 575 letter, as digital banks require it for identity verification.
Structured Fee and Timeline Comparison Table
To summarize the available application channels for non-residents, we have compiled a fee, credential, and timeline comparison table:
| Filing Route | Online Application | Fax Application (Recommended) | Mail Application |
|---|---|---|---|
| IRS Government Fee | $0 (Free) | $0 (Free) | $0 (Free) |
| SSN / ITIN Requirement | Mandatory (Must have US tax ID) | Not Required (Write "FOREIGN" on Line 7b) | Not Required (Write "FOREIGN" on Line 7b) |
| Processing Timeframe | Instant (EIN issued immediately online) | 15 to 25 business days | 8 to 12 weeks |
| Delivery Method | Digital PDF Download | Return Fax & Mail to US address | Paper letter sent via postal mail |
| Reliability & Success Rate | 100% (Automated validation) | High (Dependent on clear handwriting) | Medium (Risk of lost postal mail) |
| Complexity Level | Low | Medium (Requires cover page & faxing) | Medium (Requires international shipping) |
Strategic Recommendation
If you do not possess an SSN or ITIN, the **Fax Application Route** is the most reliable, fast, and secure method to obtain your corporate tax ID. Avoid paying high fees to agencies that charge $200+ for EINs, as you can file it yourself for free using online fax software or utilize Incorify's included service paths.
Frequently Asked Questions & Expert Guidance
Do I need an SSN or ITIN to obtain an EIN for my US LLC? ▼
No. You do not need a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). By filling out Form SS-4 and writing "FOREIGN" on Line 7b, the IRS will process your application using your passport details as the responsible party.
How much does the IRS charge to issue an EIN? ▼
The IRS does not charge any fees for issuing an Employer Identification Number. It is a completely free service. Any costs associated with getting an EIN are charged by third-party formation services for document preparation and faxing.
Can a non-resident apply for an EIN online? ▼
No. The IRS online EIN portal strictly requires a valid US SSN or ITIN. If you do not have one, the online wizard will block your application with an Error 101. You must submit your request via paper Form SS-4 faxing or mailing.
What is the difference between Form CP 575 and Form 147C? ▼
Form CP 575 is the original EIN confirmation letter generated by the IRS computer system once your account is created. Form 147C is an EIN verification letter issued by IRS agents upon phone request if you lose your original CP 575. Both are accepted by banks and payment processors.
What is the correct IRS Fax Number to submit Form SS-4? ▼
For international applicants located outside the US, the dedicated IRS fax number is +1 (855) 641-6935. Faxing to standard domestic IRS numbers will result in rejections or delays, as domestic units require an SSN/ITIN.
How long does the IRS take to process faxed applications? ▼
Typically, the IRS takes between 15 to 25 business days to process a faxed Form SS-4 and return the stamped document. During peak tax seasons (January to April), processing times can extend to 30 business days or more.
Who can act as the "responsible party" on Form SS-4? ▼
The responsible party must be an individual who ultimately controls, directs, or manages the LLC. For a single-member LLC, this is the owner of the LLC. You cannot list a business entity as the responsible party; it must be a physical person.
What should I do if the IRS loses my faxed application? ▼
If you have not received a return fax after 30 business days, call the IRS foreign EIN department at +1 (267) 941-1099. An agent can search the database by your company name and, if found, read your EIN over the phone or re-fax the approval details.