Definition:
An EIN (Employer Identification Number) is a unique 9-digit number issued by the Internal Revenue Service (IRS) to identify a business entity for federal tax purposes. It is also referred to as a Federal Tax ID. Think of it as the business equivalent of a Social Security Number (SSN).
An EIN is required to:
- Open a U.S. business bank account
- Apply for business credit or merchant services (e.g., Stripe, PayPal)
- File federal tax returns
- Hire employees in the U.S.
- Comply with IRS reporting requirements
Non-U.S. residents can obtain an EIN for their U.S. LLC or C-Corp, even without an SSN, typically by submitting Form SS-4 to the IRS. Some services (like Stripe) require an EIN even if the business has no U.S.-based staff.
Who is it for?
All U.S.-based businesses including those owned by non-residents need an EIN to operate legally, open bank accounts, and stay compliant with federal tax regulations.
