Getting an EIN (Employer Identification Number) One of the Crucial Financial Identity
In today’s global economy, launching a business in the US is more accessible than ever, even for Non-residents. However, the foundation of any legitimate business in the US begins with establishing a financial identity. Two of the most critical components of that identity are
Obtaining an Employer Identification Number (EIN) from the IRS and opening a US business Bank account.
These are not just bureaucratic steps: they are essential tools for building credibility, enabling smooth financial operations, and staying compliant with US regulations. Whether you are an international founder, a remote entrepreneur or launching your first US LLC/Corporation, having an EIN and a US bank account is non-negotiable.
In this article, we shall walk through the key nuances of one of the two important financial identifiers and make you understand how to build your business’s financial foundation in the US with clarity and confidence.
What is EIN?
An EIN (Employer Identification Number), also called Federal Tax Identification Number, is a unique nine-digit number issued by U.S Internal Revenue Service (IRS) to identify businesses for tax and administrative purposes.
It underpins both the legal identity and fiscal integrity of every formally recognized business operating within the US.
Once an EIN is issued, it becomes a permanent identifier for the business and must be properly maintained throughout the entity’s lifecycle. Certain structural or ownership changes- such as conversions, mergers or reorganizations, may require an EIN update or a new number altogether. Any modification to the business name or address must also be promptly reported to the IRS to ensure compliance and communication delays.
It is important to note that once assigned, an EIN remains permanently linked to the entity and cannot be reused or transferred to another business.
Applying for an EIN is a structured process overseen by the IRS to formally register a business for tax and compliance purposes. The application requires specific business and ownership details and while it can be submitted through multiple channels, professional assistance ensures accuracy, faster approval, and full regulatory compliances. Below is the detailed step plan to assist the readers to apply for EIN.
- Obtaining an EIN involves a structured application submitted to the IRS, and our team manages the entire process on your behalf—ensuring accuracy and compliance.
- We handle the submission either through the IRS online system or by preparing and filing Form SS-4 via fax or mail, depending on eligibility and business type.
- Basic business information such as the legal entity name, structure, ownership pattern, responsible party, and principal business address is collected securely from you.
- Once filed correctly, EINs are typically issued instantly for eligible online applications or within a few business days for non-digital filings.
- We assist non-U.S. founders in obtaining EINs without a Social Security Number (SSN) or ITIN by coordinating directly with the IRS through approved channels.
- From documentation to final issuance, our experts ensure your business receives its EIN seamlessly saving you from procedural delays and compliance risks.
Beyond serving as a federal tax identifier, the EIN functions as a cornerstone of a business’s legal and financial identity. Let’s explore the key usages of EIN in the territory of USA.
1. Filing Business Taxes
The primary function of an EIN is to serve as your business’s federal taxpayer identification number. It’s used when filing:
- Federal income tax returns (Form 1120,1065, 1041, etc.)
- Employment tax forms (Form 941, 940)
- Excise tax returns Withholding taxes (especially when paying foreign individuals)
Before you hire your first employee, the IRS requires you obtain an EIN.
You'll use it to:
- Withhold and remit payroll taxes
- File employment tax returns
- Register with your state’s Department of Labor
- Issue W-2s to employees and 1099s to contractors
4. Applying for Business Licenses and Permits
Most local, state, or federal licensing agencies require a valid EIN on: Business license applications Industry- specific certifications Reseller permits and sales tax permits without EIN your application may be considered incomplete or Invalid
5. Registering with Payment Processors
Popular platforms like: Stripe, PayPal Business Square, Amazon Seller Central Shopify Payments require an EIN to:
- Verify your business identity
- Issue tax documents (e.g., 1099-K)
- Comply with U.S. tax laws for merchants and sellers
A common question that often arises is about the differences between the various identification numbers in US. Now that we have covered the EIN, let’s take a closer look at other key identifiers like SSN, ITIN and DUNS and understand their distinct purposes and uses.
How Braj Aggarwal, CPA, P.C. Can Help
At Braj Aggarwal, CPA, P.C., we help international founders and startups establish their US business with complete financial and tax compliance. Our services include:
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EIN application for non-residents
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US business bank account guidance
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Bookkeeping and payroll
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Support for Amazon, Stripe, Shopify, and global payments
We simplify the entire process so you can focus on growing your business.
FAQ
Can a non-resident get an EIN in the USA?
Yes, foreign entrepreneurs can obtain an EIN even without an SSN. The IRS allows international founders to apply through specific channels.
How long does EIN approval take?
It can take 1–4 weeks for non-residents, depending on documentation and IRS processing.
Do I need an EIN to open a US business bank account?
Yes. Most US banks require an EIN to verify the business and comply with AML and KYC regulations.
Is EIN mandatory for US LLC?
Yes, especially if you plan to file taxes, hire employees, or work with payment processors.
Book Your Consultation
If you are planning to start or expand your business in the United States, our expert CPA team can help you obtain your EIN and set up your financial foundation.
