Sergei Tokmakov, Attorney — California Bar #279869
What is an EIN and Why Do You Need One?
An Employer Identification Number (EIN), also called a Federal Tax ID Number, is a nine-digit number the IRS assigns to business entities. Think of it as a Social Security Number for your company. Every US LLC and corporation needs one.
You need an EIN to:
- Open a US business bank account
- File federal tax returns for your entity
- Hire employees in the United States
- Apply for business licenses and permits
- Establish business credit
- Accept payments through US payment processors
Good News for Foreign Investors
You do not need a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to obtain an EIN for your business. The IRS has specific procedures for foreign applicants.
Step-by-Step: Getting Your EIN Without an SSN
Foreign nationals cannot use the IRS online EIN application - that system requires an SSN or ITIN. Instead, you have three options: fax, mail, or phone. I recommend the fax method for most clients.
Form Your US Entity First
Before applying for an EIN, you must have a legally formed entity. This means:
- File Articles of Organization (LLC) or Articles of Incorporation with your chosen state
- Receive confirmation from the Secretary of State
- Have your formation documents ready - you will need exact entity name and formation date
Most clients choose Delaware or Wyoming for their LLCs. The EIN application requires your exact legal entity name as registered with the state.
Appoint a Responsible Party
The IRS requires a "responsible party" for every EIN application. This is the individual who controls, manages, or directs the entity. For foreign-owned LLCs:
- The responsible party can be a foreign national
- You will enter your foreign passport information instead of SSN
- Use your foreign address if you do not have a US address
- Only one person can be the responsible party
Complete IRS Form SS-4
Download Form SS-4 from IRS.gov. Key fields for foreign applicants:
- Line 1: Legal name of entity exactly as registered with state
- Line 4a-b: Mailing address (can be foreign)
- Line 7a: Name of responsible party (foreign national)
- Line 7b: Leave SSN/ITIN blank - write "Foreign" or "N/A"
- Line 9a: Type of entity (LLC, Corporation, etc.)
- Line 10: Reason for applying (Started new business)
- Line 18: Check if this is a foreign applicant
Submit via Fax (Recommended)
Fax your completed Form SS-4 to the IRS. This is the fastest method for foreign applicants:
- Fax Number: (855) 641-6935 (for applicants outside the US)
- Include a cover sheet with your return fax number or email
- The IRS typically responds within 4-5 business days
- They will fax your EIN assignment letter back to you
Receive Your EIN Confirmation
Once approved, the IRS will send you:
- CP 575 Notice - Your official EIN assignment letter
- This letter is critical - banks require it to open accounts
- Keep both faxed confirmation and mailed letter safe
- Your EIN is active immediately upon assignment
Alternative EIN Application Methods
| Method | Processing Time | Best For | Notes |
|---|---|---|---|
| Fax | 4-5 business days | Most foreign applicants | Fastest non-phone option; recommended |
| Phone | Same day (if you get through) | Urgent needs, English speakers | Call (267) 941-1099; long hold times; not toll-free |
| 4-6 weeks | No rush, paper trail needed | Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999 | |
| Third-Party Service | 5-10 business days | Those who want assistance | Registered agent or attorney can apply on your behalf |
Phone Application Tips
If calling the IRS, be prepared for hold times of 30-60+ minutes. Call hours are Monday-Friday, 6:00 AM - 11:00 PM Eastern Time. Have your Form SS-4 completed before calling. The representative will ask for all the same information and assign your EIN during the call.
Common Issues and How to Avoid Them
Entity Name Mismatch
Your EIN application will be rejected if the entity name does not exactly match your state registration. Check for:
- Exact spelling, including punctuation and spacing
- Include "LLC" or "Inc." exactly as registered
- Watch for "The" at the beginning of company names
Wrong Entity Type
On Line 9a, select the correct entity type:
- Single-member LLC: Check "LLC" and write "1" for number of members
- Multi-member LLC: Check "LLC" and write the actual number of members
- Corporation: Check "Corporation (or LLC electing corporate status)"
Responsible Party Confusion
The responsible party must be an individual, not another company. Even if your LLC is owned by a foreign company, a human being must be listed as the responsible party.
Multiple Applications
Never submit multiple EIN applications for the same entity. If your first application is lost or delayed, call the IRS to check status before reapplying. Having two EINs for one entity creates serious tax complications.
After You Receive Your EIN
With your EIN in hand, you can now:
Open a US Business Bank Account
Most banks require your EIN assignment letter (CP 575), Articles of Organization, and Operating Agreement. Some banks allow remote account opening for foreign owners; others require an in-person visit.
Set Up Payment Processing
Apply for Stripe, PayPal Business, or other payment processors. Your EIN is required for all US payment accounts.
Handle Ongoing Tax Obligations
Foreign-owned LLCs have specific reporting requirements, including:
- Form 5472 - Information Return (annual, due with tax return)
- Form 1120 or 1065 depending on tax election
- State tax returns if operating in the US
Need Help With Your EIN Application?
I handle EIN applications for foreign investors as part of my entity formation services. Schedule a consultation to discuss your situation.
Sergei Tokmakov, Attorney — California Bar #279869