EIN Application Guide for Foreigners & US Citizens

Need an EIN? Here’s the quick guide: An Employer Identification Number (EIN) is a 9-digit number issued by the IRS to identify your business for tax purposes. It’s essential for tasks like filing taxes, opening business accounts, or hiring employees. The process to apply differs for U.S. citizens and foreign applicants:

• U.S. Citizens: Apply online for instant approval using your SSN or ITIN.
• Foreign Applicants: Apply via fax, mail, or phone. No SSN or ITIN is required.
• Processing Times: Online is instant, fax takes 4 business days, and mail can take up to 4 weeks.

Key Info You’ll Need:

• Business name and address (U.S. address required for foreign applicants).
• Responsible party details (owner or key financial decision-maker).
• Reason for applying (e.g., new business, hiring employees).

Quick Tip for Foreign Applicants: Use Form SS-4 and submit it via phone or fax for faster results. If you don’t have a U.S. address, consider using a virtual address service.

This guide breaks down the application process for both U.S. and foreign applicants, explains common challenges, and offers practical solutions to ensure a smooth experience. Let’s simplify your EIN application process!

What is an EIN and Why Do You Need It?

What an EIN Is and How It Works

An Employer Identification Number (EIN) is a nine-digit number issued by the IRS to identify businesses for tax purposes. It follows the format XX-XXXXXXX, which is distinct from Social Security Numbers (SSNs), formatted as XXX-XX-XXXX.

Think of an EIN as your business’s version of an SSN – it’s a unique identifier that allows the IRS to track your company’s tax filings and obligations. Once issued, an EIN is permanent and remains tied to your business, even if you eventually shut it down.

"An Employer Identification Number (EIN) is a key component for running a legitimate business. It’s not just for the Internal Revenue Service (IRS) to keep tabs on you – it’s your business’s ID for everything from filing taxes to opening a bank account, and it keeps your business finances separate from your personal accounts."

• Stripe

Unlike other tax identification numbers, such as the Individual Taxpayer Identification Number (ITIN) – used by nonresident and resident aliens without SSNs – or the SSN itself, which is for U.S. citizens and permanent residents, an EIN is specifically for businesses operating in the United States.

Now, let’s look at which types of businesses are required to have an EIN.

Which Businesses Need an EIN

Most businesses in the United States need an EIN. You’re required to have one if you:

• Employ workers
• Operate as a corporation or partnership, even without employees
• Manage an LLC with multiple owners
• File excise tax returns or employment taxes
• Withhold taxes on payments made to nonresident aliens
• Run a tax-exempt organization

Entities that require an EIN include corporations (C-corps and S-corps), partnerships, LLCs taxed as corporations, multi-member LLCs taxed as partnerships, non-profits, estates, trusts (in most cases), real estate mortgage investment conduits, farmers’ cooperatives, and plan administrators.

Sole proprietors typically don’t need an EIN unless they have employees or file excise tax returns. However, many choose to get one to simplify banking or to avoid using their SSN for business purposes.

"Although every business that has employees needs an EIN, the ‘Employer’ label in ‘EIN’ doesn’t mean a business has to have employees to need an EIN. For example, corporations, trusts, and partnerships need an EIN whether or not they have employees."

• Wolters Kluwer

Even if the IRS doesn’t require it, having an EIN can make life easier. For example, banks often ask for one when you’re opening a business account, and it helps establish a clear line between your personal and business finances.

When You’ll Use Your EIN

Once you have your EIN, you can start using it right away for various business needs. It’ll come in handy for opening bank accounts, applying for business licenses, and filing tax returns by mail.

Your EIN is essential for many official business activities, including:

• Banking: Setting up business accounts, applying for credit cards, and processing merchant transactions
• Payroll: Managing payroll systems, filing employment tax returns, and reporting employee wages
• Financing: Applying for loans, lines of credit, or equipment financing
• Licenses and Permits: Securing federal, state, and local business licenses
• State Registration: Registering for state tax accounts, submitting annual reports, and applying for professional licenses

Financial institutions often require an EIN to assess your business’s creditworthiness for loans or credit applications. Using your EIN instead of your SSN also helps maintain a clear separation between personal and business finances, which is important for protecting your assets and managing your money effectively.

Quick tip: If your tax return is due but you haven’t received your EIN yet, write "Applied For" along with the application date in the EIN field on your return.

Who Can Apply and What You Need to Get Started

Application Requirements for U.S. Citizens and Foreigners

Both U.S. citizens and foreign individuals are eligible to apply for an Employer Identification Number (EIN), though the process varies slightly depending on your residency status. The IRS doesn’t base eligibility on citizenship but rather on whether you’re engaged in U.S. taxable business activities.

If you’re a U.S. citizen, you’ll need a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) to complete the straightforward online application process. As long as your business has a principal location within the United States or its territories, you can use the IRS’s online system to apply at no cost.

For foreign applicants, the process is a bit different. You can still apply for an EIN even without a U.S. tax ID, but you won’t be able to use the online application system. Instead, you’ll need to submit your application via fax, mail, or phone. The key requirement is that your business must engage in U.S. taxable activities, such as running a business based in the U.S., hiring American employees, opening a U.S. bank account, or earning income from U.S. sources.

Required Information and Documents

Before starting your application, it’s important to gather all necessary details to avoid delays. The IRS requires specific information about your business and the person responsible for managing it.

Here’s what you’ll need:

• Legal Name and Address: Provide your business’s official name and address as registered. If you operate under a trade name (commonly known as "doing business as" or DBA), include both the legal and trade names.
• Responsible Party Details: Identify the individual who controls the business and its finances. For a sole proprietorship, this is usually the owner; for corporations, it’s typically an officer or director.
• Reason for Applying: Specify why you’re requesting an EIN. Common reasons include starting a new business, hiring employees, opening a bank account, or changing your business structure.
• Principal Business Activity: Clearly describe what your business does. This helps the IRS assign the appropriate business activity code.

You should also be prepared to provide the expected number of employees within the next year and the date you plan to start paying wages – even if you don’t intend to hire employees right away.

How Foreign Applicants Should Prepare

For foreign applicants, the process comes with additional steps since the online application is unavailable without an SSN or ITIN. Here’s what you need to know:

• Application Methods:
  If you don’t have an SSN or ITIN, you’ll need to apply using Form SS-4, which can be submitted via fax, mail, or phone. Businesses incorporated outside the U.S. or its territories must use one of these methods.
• Required Documentation:
  Along with Form SS-4, include a valid passport copy. If you have an ITIN, be sure to include it as well.
• Phone Applications:
  If you don’t have a U.S. residence or principal place of business, you can apply for an EIN by calling 267-941-1099. The line is open Monday through Friday from 6:00 a.m. to 11:00 p.m. Eastern Time. Be prepared to answer questions from Form SS-4 during the call.
• Special Notes for Foreign Entities:
  When filling out Form SS-4, make sure to indicate your foreign status and leave the SSN or ITIN field blank if you don’t have one. While not required, obtaining an ITIN can simplify the process, especially if your business is incorporated in the U.S. You may also designate a third party in the U.S. to communicate with the IRS on your behalf.

Keep in mind that processing times for foreign applications are often longer than for domestic ones. Mail applications may take several weeks, while phone applications can sometimes yield immediate results during IRS business hours.

Once you’ve gathered all necessary information, explore the various application methods to determine which one works best for your situation.

How to Apply for an EIN: 3 Methods Explained

Selecting the right method to apply for your Employer Identification Number (EIN) depends on your eligibility and how quickly you need it. The IRS offers three main ways to apply, each with its own benefits. Before you begin, double-check your business details and keep copies of your submission to avoid delays.

Applying Online Through the IRS Website

The online application is the fastest option, providing your EIN instantly during business hours if you meet the requirements. To qualify, your primary place of business must be in the United States or its territories, and you’ll need the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

Make sure your business entity is legally formed before starting the application. The system doesn’t save progress, and sessions expire after 15 minutes of inactivity. The online service operates Monday through Friday, 7:00 a.m. to 10:00 p.m. Eastern Time, and limits one EIN per responsible party per day. Once you receive your EIN, print your confirmation letter immediately (IRS guidelines).

If you’re not eligible to apply online, consider the following alternatives.

Submitting Form SS-4 by Fax

Faxing Form SS-4 is a solid choice if the online method isn’t available to you. It’s suitable for both domestic and international applicants, with the IRS typically processing faxed applications within four business days.

When filling out Form SS-4 by hand, use black ink to ensure readability. Attach a cover sheet that includes your business name and contact details, and keep both the original form and the fax confirmation page for your records.

Use the appropriate fax number based on your location:

For faster processing, send your fax during IRS business hours (IRS guidelines).

Mailing Form SS-4 to the IRS

If neither online nor fax methods work for you, mailing your application is always an option. However, this method takes the longest – typically 4 to 5 weeks for processing. If you’re a foreign applicant or have no other alternative, plan accordingly and submit your form well in advance.

Carefully review your completed Form SS-4 for accuracy before mailing it. Address the envelope to the appropriate IRS location based on your business’s location. Be aware that international mailing may take even longer. If you haven’t received your EIN within 12 weeks, contact the IRS to follow up.

For domestic businesses, send your application to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

For businesses outside the U.S., consult the IRS instructions for the correct international address.

Each method has its own perks: online applications are the quickest for eligible applicants, faxing strikes a balance between speed and accessibility, and mailing ensures everyone has a way to apply, even if it takes more time.

sbb-itb-ba0a4be

Guide for Foreign Applicants

Applying for an EIN as a foreign applicant comes with its own set of challenges. These hurdles, which U.S. citizens may not face, can lead to delays and frustration. However, understanding these obstacles and how to address them can smooth the process significantly.

Common Problems Foreign Applicants Face

Foreign applicants are unable to use the IRS’s online system, which is the quickest option available to U.S. residents. Instead, they must rely on fax, mail, or telephone applications – methods that tend to take longer.

Another common issue is the lack of a valid U.S. address, which is required for Form SS-4. Many applicants need to secure either a U.S. address or a virtual address to meet this requirement.

The absence of a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) can also complicate the process. If you don’t have either, you’ll need to write "N/A" on line 7b of Form SS-4. This could lead to additional scrutiny by the IRS.

Language barriers and the complexity of the instructions can further delay the process or result in application rejections. Additionally, time zone differences and limited IRS availability can extend processing times, which often range from 6 to 7 weeks.

Finally, submitting applications via fax or mail introduces the risk of lost or misfiled documents, which can delay processing even further.

How to Overcome Application Challenges

Here are some practical strategies to help you navigate these challenges:

• Use a third-party designee: Hiring a reliable U.S.-based agent can simplify the process. The agent’s SSN and U.S. address can be used on Form SS-4 to meet the IRS’s requirements.
• Consider professional services: Companies like BusinessAnywhere offer an EIN application service for $97. They handle the entire process on your behalf, ensuring accuracy and potentially faster processing.
• Provide accurate contact information: Make sure your phone number and email address are reliable and accessible during U.S. business hours. Regularly check for IRS communications to avoid delays.
• Address language barriers: If you’re not fluent in English, seek help from a professional translator or an attorney experienced in EIN applications. Alternatively, use translation tools or ask fluent English speakers to review your form.
• Secure a U.S. address: Virtual address services can provide a U.S. address for your application. Ensure that someone at this address is available to respond to any IRS inquiries.
• Telephone applications: For international applicants, call the IRS at 267-941-1099 between 6:00 a.m. and 11:00 p.m. Eastern time, Monday through Friday. Have Form SS-4 completed beforehand, as the IRS representative will use this information to assign your EIN.
• Indicate foreign status on Form SS-4: For question 10, select "Other" and write something like "For W-8BEN Purposes Only" or "For Tax Treaty Purposes Only". For questions 11 through 17, mark them as "N/A" if they don’t apply to you.
• Respond promptly to IRS inquiries: If the IRS requests U.S. tax return filings, reply immediately, explaining that you’re not required to file. This can help prevent additional complications in your application process.

Application Methods and Processing Times

Processing Times and How to Fix Common Problems

Building on the earlier discussion of application methods, it’s essential to understand processing times and how to handle common issues that can delay your EIN approval. Each method has its own timeline, and avoiding errors can save you from unnecessary setbacks.

How Long Each Application Method Takes

The IRS provides three primary ways to apply for an EIN, each with varying speeds. The online application is the quickest, delivering your EIN immediately after submission if everything checks out. For those who cannot apply online, fax applications are a solid alternative, typically processed within four business days. Be sure to include your fax number on Form SS-4, as the IRS will fax your confirmation back within this timeframe. Mail applications, on the other hand, take significantly longer – around four weeks – since they require manual processing and a mailed confirmation letter.

Now that you know how long each method takes, let’s dive into common errors that can cause delays and how to fix them.

How to Fix Application Errors and Delays

Mistakes during the EIN application process can lead to frustrating delays. Whether you’re applying online, by fax, or by mail, errors like choosing the wrong business type or mismatched registration details can halt your application.

Here are some common issues to watch out for – and how to address them:

• Business Type Selection: Double-check that the business type you select aligns with your registration documents.
• Name and Address Matching: Ensure your business name and address match exactly with what’s on file with your state.
• SSN/ITIN Errors: Carefully verify your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) entries to avoid mistakes.

Timing is another critical factor. Submitting your EIN application before your business is legally registered will result in rejection. Always wait for confirmation of your business registration from the state before applying.

If you run into specific errors, here’s how to handle them:

• Reference Number 102 (SSN/ITIN Errors): This code indicates an issue with your SSN or ITIN. Double-check your details and resubmit. If the problem persists, file Form SS-4 by fax or mail.
• Reference Number 101 (Name Conflicts): This error occurs when your business name conflicts with an existing one. You’ll need to file Form SS-4 manually via fax or mail.
• IRS Online System Issues: If the online system gives you trouble, wait 24 hours before trying again. Persistent issues may require switching to fax or mail.

If your application is delayed or rejected, give it 45 business days after submitting Form SS-4 before contacting the IRS. After that, you can call the IRS Business & Specialty Tax Line at 800-829-4933. Be prepared with your business name, formation date, and application details so they can assist you effectively. They can also issue an EIN Verification Letter (147C) if needed.

For those looking to avoid these headaches altogether, BusinessAnywhere offers an EIN application service for $97. They manage the entire process, ensuring accuracy and potentially faster results – particularly helpful for foreign applicants who often face extra hurdles with the IRS.

If you’re handling the process yourself, having all your business details at hand when contacting the IRS will make resolving issues much smoother. IRS representatives can guide you through specific problems and help get your application back on track.

Getting Your EIN Successfully

Securing your EIN starts with careful preparation and choosing the most suitable application method for your needs. Whether you’re a U.S. citizen or an international applicant, steering clear of common errors can save you time and unnecessary stress. These steps complement the detailed application methods and challenges previously discussed.

Double-check every detail before submission. Make sure all information on Form SS-4, such as your business name, SSN/ITIN, and addresses, matches the records you’ve registered. This final review ensures your application is accurate and aligns with the preparation steps outlined earlier.

Be patient and respect the processing timeline. Many applicants, especially those unfamiliar with IRS procedures, make the mistake of calling for updates too soon. Reaching out before the recommended timeframe is unlikely to provide new information and might even slow down your process. If you haven’t received your EIN within 12 weeks, consider reapplying – ideally with professional guidance.

For foreign applicants, the process can be more complex. Language barriers and unfamiliarity with U.S. business terminology often add layers of difficulty. Professional translators or advisors can be invaluable when completing Form SS-4.

"Too often, an opaque and confusing process can scare a small business away from taking a critical step forward toward their goals. Reaching a new level of professionalism can have a huge impact on the momentum and success of a young business, so making the EIN process more transparent and easier to complete – especially at no cost – can drive continued growth for entrepreneurs in all corners of the country."
– Titilayo Tinubu Ali, Own Your Expertise

Additionally, staying reachable is key after submitting your application. Provide a reliable phone number for IRS communications, and ensure all necessary documents are included in your submission. For international applicants, having a U.S.-based representative manage communications can help avoid unnecessary delays.

Your EIN is critical for essential business functions like banking, hiring, and tax filing. Taking the time to ensure accuracy now will pave the way for smoother operations in the future.

FAQs

What mistakes should foreign applicants avoid when applying for an EIN?

Foreign applicants often stumble upon a few typical errors when applying for an EIN. One of the most common issues is filling out Form SS-4 with incomplete or incorrect information, especially on critical lines like 7b, 8a, and 8b. Another frequent mistake is submitting details – such as the business name or address – that don’t align with the IRS’s records.

Additionally, confusion arises for applicants who don’t have a Social Security Number (SSN). Some mistakenly try to apply for multiple EINs unnecessarily or end up using the wrong forms altogether. To prevent delays or potential rejection, it’s essential to double-check all the details and carefully follow the specific instructions designed for foreign applicants.

What are the benefits of using a virtual address service for foreign applicants when applying for an EIN?

Using a virtual address service can make applying for an EIN much easier for foreign applicants by offering a legitimate U.S. address for all official IRS communications. This ensures that critical documents are delivered safely and on time, no matter where the applicant is located globally.

Beyond simplifying logistics, a virtual address provides an added layer of privacy by keeping your personal home address out of public records. It also eliminates the need for a physical U.S. presence to comply with IRS requirements, offering a practical and flexible option for international business owners.

What should I do if my EIN application is delayed or rejected by the IRS?

If your EIN application hits a snag – whether it’s delayed or rejected – the first step is to double-check your submission. Even minor errors, like a typo in your entity details or leaving a field blank, can derail the process.

For online applications, give it at least 24 hours before trying again. If you went the mail or fax route, remember that processing can take more than 4 weeks, particularly during peak times. If your application gets rejected, fix any mistakes and resubmit. Still running into problems? Reach out to the IRS for guidance. Taking the time to review your details thoroughly before submitting can save you from future headaches.

Related posts

• Virtual Address for EIN: What to Know
• US Business Bank Accounts for Non-Residents: Key Requirements
• How to Lookup my EIN Number for my LLC
• How to get an EIN