Get your EIN (Employer Identification Number)

What an EIN is, and why the IRS issues one

An Employer Identification Number is a nine-digit number the IRS assigns to a business, in the same way a Social Security number identifies a person. It appears on the business's tax returns, on its bank account application and on forms from payment platforms. Getting one from the IRS costs nothing. What you pay a service for is the preparation and filing, which matters most when you do not live in the United States.

Who needs an EIN

• Any LLC with more than one owner. It is taxed as a partnership and files its own return.
• Any company that hires employees, in the US or for US payroll.
• Corporations, including an LLC that chooses to be taxed as one.
• Foreign-owned single-member LLCs. The IRS expects these to file Form 5472 each year, and that filing needs the company's EIN.
• Almost every LLC that wants a bank account or a payment processor. A single-member LLC with no staff may not need an EIN for federal tax, but banks, Stripe and marketplaces ask for one anyway.

Getting an EIN without a Social Security number

The IRS online application asks for a Social Security number or an ITIN for the person responsible for the business. A non-resident founder usually has neither. The IRS handles that case with Form SS-4, the paper application, which can be completed with a foreign taxpayer status and submitted by fax or mail, and the IRS also has a line for international applicants. It is slower and less forgiving than the online route, and it is where most mistakes happen. That is the part we prepare for you.

What goes on the application

1. The legal name, exactly as it appears on the LLC's formation documents.
2. The entity type and, for an LLC, the number of members.
3. The state of formation and the date the LLC was formed.
4. The responsible party. This is a real person who controls the company, not another company.
5. The reason for applying, usually starting a new business.
6. A mailing address. It can differ from the registered agent address.

Mistakes that cause delays

• Applying before the LLC is approved. The state must have accepted the formation first, or the name and date will not match.
• A name that differs from the state's record. One missing "LLC" can lead to a rejected application or a bank asking questions later.
• Choosing the wrong entity type. A multi-member LLC and a single-member LLC are treated differently.
• Applying twice. A second application for the same company does not help, and it can complicate the record.

After you receive it

The IRS sends a confirmation notice, known as a CP 575. Keep it with your formation documents. Banks and payment platforms often ask for it. If you lose it, the IRS can issue a verification letter, usually called a 147C, so there is no need to apply again.

What an EIN does not do

It does not register you for state taxes, give you a business licence or file your yearly forms. Those are separate. If your LLC is foreign-owned you will also need to handle the annual IRS filing, and see US LLC tax filing for how that works.