“I keep hearing about EINs when people talk about U.S. business formation, but I’m still confused. Can you explain to me what exactly an EIN is and why it’s necessary? Also, can you give me some real examples of situations where I would actually need an EIN, especially as someone who’s not a U.S. resident but wants to start and run a company in the United States?
Answer by: abdullah-al-naim
6 days ago
An EIN (Employer Identification Number) is a nine-digit tax ID issued by the IRS to identify your business, much like a Social Security Number identifies an individual. It’s necessary because it separates your personal identity from your company and is required for most U.S. business activities.
For example, you’ll need an EIN to open a U.S. bank account, hire employees, file federal taxes, and often to apply for business licenses. Even if you’re a foreign entrepreneur, an EIN is essential for compliance and credibility.
Services like Business Globalizer and Steady Formation specialize in helping non-U.S. residents form LLCs and obtain EINs without needing an SSN, making the process smooth and secure.
In short: the EIN is your business’s official tax ID and you’ll need it any time your company interacts with the IRS, banks, or licensing authorities.
