Are you a non-US individual or a foreign company needing an EIN for business in the United States? This guide compares both paths, outlines the process, highlights common errors, and shows why using SpeedEIN can help you avoid costly mistakes.
🌍 What Is an EIN, and Who Needs One?
An EIN (Employer Identification Number) is a federal tax ID number issued by the IRS to identify businesses or certain individuals for U.S. tax purposes.
You may need an EIN if:
Situation | EIN Required? |
---|---|
Foreign company operating in the U.S. | ✅ Yes |
Non-US individual opening a U.S. bank or Amazon account | ✅ Yes |
Hiring employees in the U.S. | ✅ Yes |
Opening a Stripe or PayPal Business account | ✅ Yes |
Investing in U.S. real estate or entities | ✅ Often required |
📌 According to IRS Publication 1635, non-residents with U.S. tax obligations should obtain an EIN.
👤 Non-US Individual vs 🌐 Foreign Entity: Key Differences
Criteria | Non-US Individual | Foreign Company |
---|---|---|
Common Uses | Freelancing, eCommerce, investments | Subsidiary setup, U.S. expansion |
Required Form | SS-4 | SS-4 (marked as “foreign entity”) |
SSN/ITIN Required? | ❌ No – write “Foreign” | ❌ No |
Online Application Allowed? | ❌ No – fax/mail only | ❌ No |
CP575 Letter Provided? | ✅ Yes | ✅ Yes |
Common Errors | Incomplete description, incorrect formatting | Missing legal documents, no U.S. agent |
Best Practice | Use expert EIN service | Include certified documents & power of attorney |
📝 Special IRS Instructions for Foreign Applicants
Based on IRS Form SS-4 Instructions and Publication 519:
- All entries must be in English, typed or printed clearly
- Foreign companies must write “Foreign Entity” in line 10 of the SS-4
- If no SSN/ITIN, write “Foreign” instead of leaving the field blank
- Online EIN applications are not available to foreign applicants
- CP575 confirmation letters are only sent via physical mail to U.S. addresses
📌 Mistakes won’t be flagged. The IRS simply ignores invalid applications.
⚠️ Top 5 Reasons EIN Applications from Non-US Applicants Are Rejected
Error | Explanation |
---|---|
Mixed languages in form | IRS only accepts English entries |
No valid U.S. mailing address | CP575 will be undeliverable |
Using fake addresses | High risk of EIN revocation |
Leaving fields blank instead of writing “Foreign” | Treated as incomplete |
Submitting online as foreigner | Not allowed — must use fax/mail |
✅ How SpeedEIN Helps You Succeed
Feature | Self-Application | With SpeedEIN |
---|---|---|
Approval Rate | ~60% | Over 98% |
Form SS-4 Preparation | DIY, high risk | Done by experts |
Faxing to IRS | Must send internationally | We submit directly |
U.S. Address | Must arrange yourself | We help guide legal address setup |
Language Support | ❌ English only | ✅ 14 languages including Chinese, Spanish, Korean |
Compliance & Legality | Uncertain | 100% IRS-compliant |
📌 Real Case Examples
- 🇰🇷 Mr. A from South Korea: A freelancer trying to start an Amazon store. His self-filed SS-4 was rejected three times. With SpeedEIN, he received his EIN and CP575 in 5 business days.
- 🇫🇷 Company B from France: A tech firm expanding to the U.S. SpeedEIN helped translate and format corporate bylaws, submitted their EIN application with power of attorney — approved within 8 days.
💡 Summary: What You Need to Know
- ✅ Non-US persons and foreign entities can legally apply for EIN
- ❌ Never apply online if you don’t have SSN or U.S. entity
- ✅ Foreign companies must submit certified English documents
- ⚠️ CP575 is the only official EIN proof — and it is mailed only
- ✅ SpeedEIN handles the hard parts — so you don’t make fatal errors