I often hear people talk about the U.S. EIN when setting up a company, but I’m still not clear on what it really means. What exactly is the United States EIN, and why is it so important for businesses? As a non-U.S. resident who wants to start a company, do I really need one, and what kinds of situations would require me to have an EIN?
The United States EIN (Employer Identification Number) is a unique nine-digit number issued by the IRS to identify a business for federal tax purposes. You can think of it as the Social Security Number for your company.
You’ll generally need an EIN to file business taxes, hire employees, open a U.S. business bank account, or apply for many licenses.
Even if you’re a non-U.S. resident, an EIN is often required when you form a U.S. company, open a branch, or do business within the country.
Providers like Business Globalizer and Steady Formation make it easier for foreign founders by handling EIN applications, LLC formation, and compliance from start to finish.
In short, the EIN is your business’s federal tax ID in the United States — and you’ll need it for many official business activities.