What is an EIN and When is it Required
An Employer Identification Number (EIN), also referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States. Just as a Social Security Number (SSN) acts as a personal identifier for US residents, the EIN serves as the official tax identifier for your business entity. Obtaining an EIN is a mandatory requirement for compliance, financial operations, and entering the US market.
The Core Operational Purposes of an EIN
Many international founders believe that if their LLC has no employees or operates entirely online, they do not need an EIN. This is a critical misconception. You cannot legally conduct business in the US without a tax ID. The EIN is required for:
- Opening Commercial US Bank Accounts: Federal banking regulations (specifically KYC and AML laws) strictly prohibit US financial institutions from opening commercial checking or savings accounts for businesses that do not possess a verified tax ID.
- Accessing Merchant Payment Gateways: Premium global payment processors like Stripe, PayPal Business, and Shopify Payments require you to enter your EIN. They validate this number directly against the IRS database to verify your company's tax classification before authorizing payouts.
- Hiring Employees or Contractors: If you hire workers in the US, or if you pay foreign contractors more than $600 annually, you must report these payments to the IRS using your EIN.
- Filing Federal Informational and Income Tax Returns: All foreign-owned disregarded single-member LLCs must file Form 5472 and Form 1120 pro-forma annually. These filings cannot be processed by the IRS without an active EIN on file.
Applying for an EIN Without a Social Security Number
For US residents who possess a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), obtaining an EIN is a simple, five-minute online process through the official IRS website. However, for non-US residents who do not have an SSN or ITIN, the online application portal is completely inaccessible.
The Offline Application Routes: Fax vs. Mail
If you do not have a US personal tax ID, you must submit your application to the IRS using one of two manual, offline routes:
- Option 1: Faxing Form SS-4 (Recommended): You fill out the paper Form SS-4, sign it, and transmit it via a digital fax service to the IRS foreign application unit. The IRS reviews the application, writes your newly assigned EIN directly onto your form, and faxes the completed document back to you. This process typically takes between 15 and 30 business days, depending on IRS backlog volumes.
- Option 2: Mailing Form SS-4: You print your signed Form SS-4 and mail it to the IRS processing center in Cincinnati, Ohio. The IRS processes the form and mails a physical confirmation letter back to your Virtual Mailbox. Because international mail adds significant transit times, this route takes between 45 and 90 days. We highly discourage this method unless you do not have access to a digital fax number.
Form SS-4 Line-by-Line Breakdown
To avoid IRS rejections or delays, Form SS-4 must be filled out with absolute precision. Any discrepancy between your state-approved Articles of Organization and your Form SS-4 will cause the IRS agent to reject your application.
Key Fields Explained for Foreign-Owned LLCs
Follow this exact line-by-line guide to complete the form correctly:
- Line 1: Legal Name of Entity: Write the exact legal name of your LLC, including the designator (e.g., "Apes Innovations LLC"), precisely as it appears on your state-approved filing. Do not abbreviate or miss spaces.
- Line 4a-4b: Mailing Address: Enter your US virtual business address PMB/Suite details. The IRS will mail your official confirmation letters to this address.
- Line 7a-7b: Name of Responsible Party: Enter your full legal name as the owner, and write "FOREIGNUS" or leave the SSN/ITIN field blank. The responsible party must be an individual, not another company.
- Line 8a: Is this a Limited Liability Company? Check "Yes."
- Line 8b: Number of LLC Members: Enter "1" (if you are the sole owner).
- Line 8c: Was the LLC organized in the US? Check "Yes."
- Line 9a: Type of Entity: Check the box for "Other" and write "Foreign-owned disregarded entity" on the line next to it. Do not check "Corporation" or "Partnership" unless you have formally elected that tax classification.
- Line 10: Reason for Applying: Check "Started new business" and write "To open US business bank account and process payment transactions."
IRS Submission Processes and Faxing Guide
Once Form SS-4 is fully drafted, checked, and signed by the responsible party, you must submit it to the specialized IRS international unit. Because the IRS does not utilize modern secure email systems for paper applications, digital faxing is the fastest communication channel.
Detailed Digital Faxing Steps
Use a premium digital fax service to handle the transmission. Your submission package must include a formal Cover Sheet followed by the signed Form SS-4. Address the cover sheet to: **Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH**. Clearly state your company name, your digital return fax number, and the total page count.
Transmit the package to the official IRS international fax number: +1-304-707-9471. Ensure that you print and save the transmission report showing a "Successful / OK" status. If you do not receive a fax back within 3 weeks, you can contact the IRS EIN international unit at **+1-267-941-1099** to check the status of your application. The agent can read your EIN to you over the phone once they verify your identity.
Opening US Bank Accounts and Verifying the EIN
Within 30 to 45 days of processing, the IRS will mail your official EIN confirmation letter—specifically Form CP 575—to your virtual business address. If you applied via fax and received the stamped Form SS-4 back, that copy is legally valid for immediate use, but the physical CP 575 letter acts as the ultimate verification document.
The IRS Database Synch Delay
A common issue faced by digital nomads is that merchant networks (like Stripe and PayPal) use automated validation systems that check your EIN against the IRS database. It takes approximately **10 to 14 business days** for a newly issued EIN to fully propagate and synch across all federal databases. If you attempt to connect your new EIN to Stripe immediately, the verification will fail. We advise waiting 2 weeks after receiving your tax ID before initiating payment processor setups.
When uploading documents to banks like Mercury or Wise, you must upload the full page PDF scan of Form CP 575 or Form 147C. Ensure that the document shows all four corners, the text is completely legible, and the LLC name exactly matches your Articles of Organization. Low-resolution or cropped photos are rejected instantly by bank compliance teams.
Frequently Asked Questions and Answers
What is the difference between an EIN, SSN, and ITIN? ▼
An SSN (Social Security Number) is a personal tax ID issued to US citizens and residents. An ITIN (Individual Taxpayer Identification Number) is a personal tax ID issued to foreign individuals who have US tax filing obligations but are not eligible for an SSN. An EIN (Employer Identification Number) is a business tax ID used by a business entity (like an LLC or Corp) to open bank accounts, process payments, and file corporate returns.
Can I apply for an EIN online without a Social Security Number? ▼
No. The IRS online EIN application wizard strictly requires the applicant to possess a valid US SSN or ITIN. If you do not have one of these, you must apply by completing the paper Form SS-4 and submitting it via fax or mail to the IRS international unit.
How long does it take for a non-resident to get an EIN? ▼
Applying via fax takes between 15 and 30 business days, depending on IRS processing queues. Applying by mail takes between 45 and 90 days due to transit delays. You can also call the IRS international unit to obtain the number over the phone, which takes about 30 to 45 minutes on hold.
What is a CP 575 letter and why is it important? ▼
Form CP 575 is the official paper confirmation letter issued by the IRS when they assign an EIN to your business. It is sent to your registered business address. This letter is the definitive document required by US commercial banks, Stripe, and Amazon to verify your company's tax identification number.
What is a Form 147C and how is it different from CP 575? ▼
A Form 147C is an EIN Verification Letter. If you lose your original CP 575 letter, you can contact the IRS and request a verification letter. The IRS will fax this letter to you. It contains the same information as the CP 575 and is fully accepted by banks and merchant processors as proof of your EIN.
Does my EIN expire? ▼
No. Once assigned by the IRS, your business EIN is permanent and does not expire. Even if you suspend or administratively close your LLC at the state level, the EIN record remains active in the IRS database until you send a formal closure letter to the IRS to deactivate it.
Can I change the responsible party on my business EIN? ▼
Yes. If you sell your LLC or change managers, you must report the change of the responsible party to the IRS within 60 days. This is done by filing Form 8822-B (Change of Address or Responsible Party) and mailing it to the IRS processing center.
Is there a state fee to get an EIN? ▼
No. The IRS does not charge any fee to issue an Employer Identification Number. It is a completely free service. Any agency or website charging you fees for an EIN is charging for document preparation and filing services, not the number itself.
