What Is an EIN?
An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the IRS to businesses and other entities operating in the United States. It functions similarly to a Social Security Number (SSN) but is used for business tax purposes.
Who Needs an EIN?
An EIN isn’t just for employers. The following types of entities typically require an EIN:
- Limited Liability Companies (LLCs)
- Partnerships
- Corporations
- Trusts
- Non-profit organizations
- Foreign individuals or entities with U.S.-source income
Even if your business has no physical presence in the U.S., you may still need an EIN to comply with U.S. tax rules, open a business bank account, or contract with U.S.-based platforms or vendors.
Why Do Non-U.S. Residents Need an EIN?
Many non-U.S. residents set up U.S. companies (like LLCs or Corporations) for various reasons:
- To open Stripe, PayPal, or U.S. business bank accounts
- To work with U.S. clients or vendors
- To sell on U.S. platforms like Amazon or Etsy
- To fulfill IRS tax filing requirements
- To complete forms like W-8BEN or W-8BEN-E that often request an EIN
For example, if you want to start a store on Amazon.com, the platform may require you to provide an EIN for tax verification purposes.
EIN vs. ITIN: What’s the Difference?
Many foreign entrepreneurs confuse EIN with ITIN. Here’s a simple breakdown:
- EIN is a tax ID for businesses or legal entities.
- ITIN is a tax ID for individuals who are not eligible for an SSN.
If you’re operating a business entity in the U.S., you most likely need an EIN, not an ITIN.
How Can You Apply for an EIN?
While the IRS offers free EIN application services, the online application is only available to people with an SSN or ITIN. That means most non-U.S. residents must apply via Form SS-4, and submit it by fax or mail.
At SpeedEIN.com, we specialize in helping non-U.S. residents apply for EINs without needing an SSN, without calling the IRS, and without making costly mistakes. Our service is fast, accurate, and fully transparent—so you can focus on growing your business in the U.S. market.