Introduction
If you’re a non-U.S. resident planning to start a business or open a bank account in the United States, you might have come across the term “EIN” — Employer Identification Number. A common question among foreign entrepreneurs is whether they are eligible to obtain an EIN without U.S. citizenship or residency. The answer is yes — foreigners can apply for an EIN. In this article, we’ll break down the concept, explore who needs one, and clarify the process and implications for foreign applicants.
What Is an EIN and Why Might a Foreigner Need One?
An EIN, or Employer Identification Number, is a unique 9-digit number assigned by the IRS to identify a business entity for tax purposes. It’s sometimes referred to as a Federal Tax Identification Number.
While the term “Employer” is in the name, an EIN is not just for businesses with employees. You may need one if you’re:
- Forming a U.S. LLC or corporation
- Opening a U.S. business bank account
- Selling on platforms like Amazon or Shopify
- Applying for licenses or permits in the U.S.
- Hiring U.S.-based employees or contractors
- Filing tax returns with the IRS
Can Foreigners Get an EIN Without a Social Security Number (SSN)?
Yes. Foreign individuals and entities can apply for an EIN even without an SSN or ITIN (Individual Taxpayer Identification Number). The IRS recognizes that non-residents may need to do business in the U.S., and it provides alternative ways to verify identity and eligibility.
The key is that you must have a valid reason for needing an EIN related to U.S. tax responsibilities — such as forming a U.S. business or engaging in business activities that generate U.S. income.
Does a Foreigner Need to Live in the U.S. or Have a U.S. Address?
No, physical presence in the United States is not required. Foreign applicants can use their local address or, in some cases, a registered agent’s address in the U.S. depending on the structure of the business.
However, U.S. entities like LLCs often need a registered agent in the state where they are formed, which can serve as an address for correspondence with state authorities.
What Types of Foreigners Typically Apply for an EIN?
- Non-resident individuals setting up a U.S. LLC or corporation
- Foreign-owned U.S. businesses
- International freelancers or digital entrepreneurs serving U.S. clients
- Foreign e-commerce sellers registering on U.S.-based platforms
- International investors or partners in U.S. ventures
Common Misconceptions
- “You must have an SSN to get an EIN” – Not true. The IRS allows foreign applicants without an SSN to apply via alternative methods.
- “Only U.S. businesses can get an EIN” – Also false. Foreign-owned U.S. entities can and often do apply.
- “An EIN gives you legal immigration status” – Incorrect. An EIN is a tax ID, not a visa or residency document.
EIN vs ITIN: What’s the Difference for Foreigners?
Some confusion arises between the EIN and the ITIN. Here’s the difference:
- EIN is for business entities — it’s like a Social Security Number for your company.
- ITIN is for individuals who need to file U.S. taxes but aren’t eligible for an SSN.
A foreign individual might need both — for example, if you’re the sole member of a U.S. LLC and need to file a U.S. tax return as an individual, you’d need an ITIN for yourself and an EIN for the business.
Final Thoughts
If you’re a foreign entrepreneur exploring the U.S. market, don’t let your location hold you back. The U.S. tax system is designed to accommodate foreign entities and individuals who wish to engage in business. An EIN is your first step toward legitimacy and compliance in the U.S. — and yes, you can get one even as a non-resident.