The Employer Identification Number is the key that opens everything American: the bank account, the payment processor, payroll, and every tax filing your company will ever make. A stubborn myth says foreign founders cannot get one without a Social Security Number. The myth is wrong, and believing it sends founders into the arms of expensive middlemen for something the IRS provides for free.
What the EIN is, and what it is not
An EIN is a nine-digit tax identification number for a business entity. It identifies the company, not you. It is not a visa, not a work permit, and not a personal tax ID. Your US LLC or C-Corp needs one before it can do essentially anything, and your US company formed from abroad needs it before the filings that follow formation can even be prepared.
The confusion comes from the online application. The IRS's instant web tool requires the responsible party to have an SSN or ITIN, so foreign founders get rejected there and conclude the door is closed. It is not. The web tool is simply one of four doors, and the other three are open to you.
The sequence that works
The instrument is Form SS-4, Application for Employer Identification Number. For a foreign founder the sequence looks like this:
- Form the company first. The SS-4 asks for the legal name, formation state, and formation date. The EIN comes after the certificate, not before.
- Complete the SS-4 precisely. The responsible party must be a real person who controls the entity, not another company. Where the form asks for the responsible party's SSN or ITIN, a foreign person writes "Foreign." The entity name must match the formation certificate exactly, character for character.
- Submit by phone, fax, or mail. International applicants can call the IRS directly and, in many cases, receive the EIN during the call. Fax is the reliable written route and typically takes a few weeks. Mail is the slow road, often six weeks or more. Current numbers and addresses are on IRS.gov and change occasionally, so confirm before sending.
- Keep the CP 575 letter forever. The confirmation letter the IRS issues is requested by banks, payment processors, and occasionally investors for the life of the company. It is issued once.
No SSN. No ITIN. No US address requirement for the responsible party. No visit to the United States.
The mistakes that cause delays
Name mismatches. The single most common cause of EIN problems is a company name on the SS-4 that differs from the formation certificate: a missing "LLC," an ampersand versus "and," a typo. The mismatch surfaces months later at the bank, at the worst possible moment.
The wrong responsible party. Listing a nominee, an agent, or a parent company because it seemed convenient. The IRS expects the individual who actually controls the entity, and the responsible-party record matters later if anything needs correcting.
Paying for what is free. The IRS charges nothing for an EIN. Services charging hundreds of dollars are charging for form-filling. Sometimes delegation is worth it; just know what you are buying.
Stopping at the EIN. The EIN is the beginning of your company's relationship with the IRS, not the end. The same foreign ownership that shaped the application creates annual obligations, starting with Form 5472 for foreign-owned LLCs, which carries an automatic $25,000 penalty when missed.
The durable fix is structural
The EIN is a one-time task, but it is also the moment your compliance calendar should be born. Every obligation the new company owes, federal and state, annual and quarterly, belongs on that calendar from the day the CP 575 arrives. That is how we run it for clients: the EIN application is one step inside a sequence that ends with a company that files everything, everywhere, on time.
This article is general information about US rules as they commonly apply, not tax or legal advice for your situation. IRS procedures, contact channels, and processing times change. Speak with a qualified adviser before acting.