What Is an EIN and Do You Need One?

What Is an EIN?

An EIN — Employer Identification Number — is a nine-digit number assigned by the Internal Revenue Service to identify a business entity for federal tax purposes. It looks like this: XX-XXXXXXX.

Think of it as the Social Security Number for your business. Just as a Social Security Number identifies an individual taxpayer, an EIN identifies a business entity. It is also called a Federal Tax Identification Number or Federal Employer Identification Number (FEIN).

Despite having "Employer" in the name, you do not need to have employees to get or need an EIN. Single-person LLCs with no employees routinely obtain EINs.

The EIN is issued by the IRS and is separate from your state registration. When GovAxis files your Articles of Organization with Wyoming or Delaware, that gets you a state-registered entity. The EIN is a federal-level identifier you apply for separately — typically immediately after your state formation is approved.

What You Need an EIN For

Opening a U.S. business bank account

This is the most important practical use of an EIN for most international founders. Mercury, Relay, Wise Business, and virtually every U.S. business bank require an EIN to open a business checking account. You cannot open a business bank account without one.

Filing U.S. business taxes

Any U.S. tax filing made by or on behalf of your business — including Form 5472, the pro forma 1120, partnership returns, and any corporate income tax return — requires your EIN.

Hiring employees

If you ever hire U.S. employees or U.S.-based contractors required to receive a W-2, you need an EIN to process payroll and file employment tax returns.

Working with U.S. clients

Some U.S. companies require your EIN before issuing a 1099 for contractor payments over $600/year. They will send you a W-9 form requesting it.

Applying for business credit

U.S. business credit cards, business lines of credit, and other credit products require an EIN.

Stripe and payment processors

To receive payouts from Stripe, PayPal Business, or other U.S. payment processors as a business entity, you will typically need an EIN for tax documentation purposes.

What You Can Do Without an EIN

While you wait for your EIN (which can take 2–8 weeks for non-residents), you are not completely stuck:

You can:

• Operate your business and invoice clients
• Receive payments internationally via Wise, PayPal (personal), or direct wire
• Sign contracts — your company exists the moment the state approves formation
• Set up basic business infrastructure (domain, email, tools) in your company name
• Begin the process of setting up Stripe (though full payout functionality may require EIN)

You cannot:

• Open a U.S. business bank account (Mercury, Relay, etc. all require EIN)
• File U.S. tax forms that require an EIN
• Formally respond to U.S. employment tax obligations

For most international founders, the EIN wait mainly delays the banking step. Everything else can proceed.

How to Apply as a Non-Resident

The EIN application form is Form SS-4 (Application for Employer Identification Number). How you apply depends on whether you have a U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

If you have a U.S. SSN or ITIN:

You can apply online at IRS.gov and receive your EIN immediately — the same day, often within minutes. This is available to U.S. residents and those with existing SSNs or ITINs.

If you do not have an SSN or ITIN (the typical non-resident case):

You cannot apply online. Your options are:

• By fax: Submit Form SS-4 by international fax to the IRS. Processing time: 4–6 weeks.
• By mail: Submit Form SS-4 by international post. Processing time: 6–8 weeks.
• By phone: Non-residents can call the IRS Business & Specialty Tax Line at +1 (267) 941-1099 (not a toll-free number). This requires English fluency and navigating IRS hold times. If successful, you can receive your EIN verbally and by letter. GovAxis does not use this method for clients due to reliability concerns.

GovAxis handles Form SS-4 preparation and submission by fax as part of all formation packages. We submit immediately after your state formation is approved.

What GovAxis submits:

• Completed Form SS-4 with your company information, entity type, and responsible party designation
• Cover sheet with your fax contact information for the IRS to return the EIN confirmation

You do not need to be present or do anything. We handle the submission and notify you when the EIN Confirmation Letter (CP 575) arrives.

Why It Takes So Long

The IRS processes fax and mail EIN applications for non-residents at a significantly slower rate than online applications. The primary reason: volume and manual processing. Online applications are processed automatically. Fax/mail applications are processed by IRS staff reviewing physical forms.

Typical timelines:

• Online (SSN/ITIN holders): Same day
• Phone: Same day if you get through
• Fax (non-residents): 4–6 weeks
• Mail (non-residents): 6–8 weeks, sometimes longer

Can anyone speed this up?

No. There is no expedite option for EIN applications. Any service that claims to "fast-track" your EIN is either misleading you or has access to insider contacts (which violates IRS policy). The processing time is set by IRS staffing levels and cannot be meaningfully shortened.

This is the most common frustration international founders experience with U.S. company formation. The honest answer is: it takes the time it takes.

What Happens After You Receive It

When the IRS processes your application, they issue an EIN Confirmation Letter — formally called Form CP 575. This is the authoritative document confirming your EIN. GovAxis will upload it to your dashboard immediately upon receipt.

Your EIN is permanent. It is assigned to your entity and does not expire or change (unless you completely restructure the entity). Even if you close the business, the EIN remains in IRS records.

With your EIN in hand, you can:

• Open your business bank account (Mercury, Relay, or Wise Business) — this is the next step GovAxis facilitates on Standard and Premium tiers
• Complete Stripe onboarding and receive business payouts
• File Form 5472 at your next annual filing (Premium tier)
• Respond to any W-9 requests from U.S. clients

Key point: The EIN is a federal identifier, not a state one. It takes no additional filings to use your EIN in all 50 states. Once you have it, you're done.