EIN explained: what it is, why you need one, and how to get it
The short version
- An EIN is your company’s federal tax ID — like a social security number for your business.
- You’ll need it to open a US bank account, file taxes, hire, and work with payment processors.
- Non-residents without an SSN can still get one — the route is just different.
- It’s free from the IRS, but the process trips up a lot of foreign founders.
Right after forming a US company, every founder runs into the same three letters: EIN. It sounds bureaucratic, and it is — but it's also the key that unlocks almost everything else you want to do. Here's what it is and how to get one, especially if you don't have a US Social Security Number.
What an EIN is
An Employer Identification Number is a nine-digit federal tax ID for your business, issued by the IRS. Think of it as a Social Security Number for your company. Despite the name, you don't need employees to need one.
Why you can’t really operate without it
- Banking: US banks and fintechs (Mercury, Brex and others) require it to open a business account.
- Taxes: it's how the IRS identifies your company on every filing.
- Getting paid: Stripe, PayPal and most processors ask for it.
- Hiring & contractors: you need it to run payroll and issue tax forms.
The part that trips up non-residents
If you have a US SSN, getting an EIN online takes minutes. If you don't — which is the case for most non-resident founders — the online route is closed to you. Instead the application (Form SS-4) goes to the IRS by fax or mail, and it has to be filled out in a very specific way. Small errors here cause long, frustrating delays.
How to get one
The IRS doesn't charge for an EIN — be wary of sites that imply otherwise. The work is in preparing the SS-4 correctly for a foreign-owned entity and getting it through without the back-and-forth. When we handle a company formation, the EIN is part of the package, so you come out the other side bank-ready.
Forming a company or stuck waiting on an EIN? We’ll get it sorted as part of a clean, bank-ready setup.
