What is an EIN? Definition and concept
The EIN (Employer Identification Number), also known as Federal Tax ID Number or Tax ID, is the tax identification number the IRS (Internal Revenue Service) assigns to companies in the United States. It is the American equivalent of the CUIT in Argentina, the RFC in Mexico, or the CIF/NIF in Spain.
The EIN format is always 9 digits following this pattern: XX-XXXXXXX (for example, 82-1234567). Each LLC receives a unique, non-reusable EIN that identifies it within the U.S. tax and banking system for life.
The EIN belongs to the company (the LLC), not the owner. If you have several LLCs, each one has its own EIN. The owner may have no SSN or ITIN and still obtain the EIN for their LLC.
The name "Employer Identification Number" can be misleading: you don't need to have employees to get one. Any LLC, even a single-member LLC with no employees, needs and can obtain an EIN.
What do you need an EIN for? Essential uses
U.S. bank account
Mercury, Relay, Lili and practically every bank require the EIN to open a business account.
Stripe and PayPal Business
To activate a Stripe or PayPal Business account in the USA under your LLC's name, the EIN is mandatory.
Contracts and invoices
Corporate clients in the USA need your EIN to issue Form 1099 and meet their tax obligations.
IRS filings
Form 5472, Form 1065 (partnerships) and other IRS filings require the LLC's EIN.
Amazon Seller Central
To sell on Amazon USA as a professional seller, you need your U.S. LLC's EIN.
Suppliers and wholesalers
Many wholesale suppliers in the USA require the EIN to issue resale credentials (resale certificate).
How to get an EIN: options for non-residents
The EIN is requested directly from the IRS using Form SS-4 (Application for Employer Identification Number). The process varies depending on whether or not you have an SSN (Social Security Number).
Option 1: Online (only for residents with an SSN)
The IRS online portal (irs.gov) lets you obtain the EIN immediately. However, this option is available only to those who have an SSN or ITIN. If you are a Latin American or European without an SSN, you cannot use this portal.
Option 2: By fax (for non-residents)
Non-residents without an SSN can send the completed Form SS-4 to the IRS by fax. Processing time is 4 to 6 weeks. The EIN is faxed back to the applicant. This is the most common route for Start Companies clients.
Option 3: By mail
It is also possible to send Form SS-4 by mail. However, it can take between 6 and 12 weeks, so we don't recommend it.
Option 4: By phone (international call)
Non-residents can call the IRS directly at +1 (267) 941-1099 (international line) Monday through Friday, 6am–11pm EST. An IRS agent can assign the EIN during the same call if all the information is correct. It requires speaking fluent English.
The EIN is completely free if you request it directly from the IRS. If you pay a service like Start Companies to handle it, the charge is for the filing service, not for the EIN itself. Be wary of anyone charging "IRS fees" for the EIN: they don't exist.
Step-by-step process: how Start Companies gets your EIN
- You provide your details: full name, address, LLC details (name, state, entity type) and a copy of your passport.
- We complete Form SS-4: we fill out the form with the correct information in the format the IRS requires for non-residents.
- We send the form to the IRS: by fax to the IRS international line. We keep the transmission confirmation.
- We follow up: we check the status of the application periodically.
- We receive the EIN: the IRS sends the EIN back by fax. We deliver it to you along with the official confirmation letter (CP 575 or equivalent).
- Validation: we verify that the EIN is correct and active in the IRS systems.
The estimated time for this process is 4 to 6 weeks from when the form is sent. During high-demand periods (January–April) it can extend up to 8 weeks.
Common problems when getting an EIN as a foreigner
Error in the responsible party's name
The IRS requires the LLC's "responsible party" to be the actual owner. If the name on Form SS-4 doesn't exactly match the name on the passport, the IRS may reject or delay the application.
Incorrect or foreign address
Form SS-4 can accept a foreign address, but it must be correctly formatted. An incomplete address or one with special characters can cause problems.
LLC not active at the time of the application
The EIN is requested once the LLC has been formally approved by the state. Requesting the EIN before the LLC is active can create inconsistencies.
Outdated IRS fax numbers
The IRS periodically changes its fax numbers. Using an outdated number means the form goes to the wrong number and the application is lost.
There are online services that charge between $200 and $500 USD to "process the EIN urgently," promising to get it in 24 hours for non-residents. This is impossible: the IRS has no 24-hour "urgent" process for non-residents. Start Companies charges a transparent fee for the real filing service, with realistic timelines.
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Written by
Ignacio Navarro
Ignacio Navarro is a Certified Public Accountant, founder of Start Companies and a specialist in U.S. companies for entrepreneurs, freelancers and digital businesses in Latin America. With training in international taxation and studies at UCEMA, he advises non-resident clients on forming and maintaining LLCs, opening bank accounts, invoicing, accounting and taxes. His experience combines tax strategy, compliance and practical vision for operating in the U.S. in a simple, organized and professional way.
