What an EIN Is — and What It Is Not
An Employer Identification Number (EIN) is a nine-digit federal tax identification number issued by the IRS to businesses and other entities operating in the United States. You do not need to be a U.S. citizen, a U.S. resident, or even physically present in the United States to obtain one. Non-U.S. residents who form a U.S. LLC, corporation, or other entity — or who need to hire employees, open a U.S. business bank account, or meet withholding obligations — will typically need an EIN. nolly.com prepares and submits EIN applications for non-U.S. residents worldwide, handling the documentation and IRS process from start to finish.
Key Takeaways
- An EIN is a federal tax ID for U.S. business entities — not a personal identification number.
- Non-U.S. residents can obtain an EIN without an SSN or ITIN, but the application process differs from the standard online route.
- An EIN is required to open most U.S. business bank accounts, hire employees, and file certain U.S. business tax returns.
- Foreign-owned single-member LLCs have specific EIN and annual reporting obligations even when no U.S. tax is owed.
An EIN — also called a Federal Employer Identification Number or FEIN — is issued by the IRS under the format XX-XXXXXXX. It identifies a business entity for federal tax purposes in the same way a Social Security Number identifies an individual. Despite the word “employer” in the name, you do not need to have employees to require an EIN. The IRS assigns EINs to sole proprietors, partnerships, LLCs, corporations, trusts, estates, and non-profit organizations.
An EIN is not the same as a state business registration number, a sales tax permit, or a business licence. It is a federal tax identifier only. It is also not the same as an ITIN, which is a personal tax identification number for individuals who cannot obtain a Social Security Number. A foreign individual who owns a U.S. LLC may need both: an EIN for the entity and, in some circumstances, an ITIN for themselves personally.
Who Needs an EIN as a Non-U.S. Resident
The IRS requires an EIN in a range of situations that are common for non-U.S. residents doing business in the United States. The table below outlines the most frequent scenarios.
| Situation | EIN Required? | Notes |
|---|---|---|
| Forming a U.S. LLC (single-member, foreign-owned) | Yes | Required for tax filing, banking, and Form 5472 reporting |
| Forming a U.S. corporation (C-corp or S-corp) | Yes | Required before filing corporate returns or issuing payroll |
| Opening a U.S. business bank account | Yes (in most cases) | Most U.S. banks require an EIN for business accounts |
| Hiring U.S.-based employees | Yes | Needed for payroll tax withholding and W-2 reporting |
| Receiving U.S. income as a partnership or multi-member LLC | Yes | Required for Form 1065 partnership return |
| Acting as a withholding agent for U.S.-source payments | Yes | Required to file Forms 1042 and 1042-S |
How Non-U.S. Residents Apply for an EIN
The standard IRS online EIN application — available at irs.gov — requires the applicant to have a valid SSN or ITIN. Non-U.S. residents who have neither must apply using a different method: by submitting IRS Form SS-4 (Application for Employer Identification Number) by fax or by international telephone to the IRS.
The fax route is generally the most practical for applicants outside the United States. A completed Form SS-4 is faxed to the IRS, and the EIN is typically returned by fax within four business days. The telephone route allows an IRS representative to assign the EIN during the call, but international applicants must call a specific IRS number during U.S. business hours, which can be logistically difficult depending on time zone.
What Form SS-4 Requires
Form SS-4 asks for the legal name of the entity, the entity type, the reason for applying, the responsible party’s name and identifying number, and the entity’s principal business activity. For a foreign-owned LLC, the “responsible party” is typically the individual member who controls the entity. If that individual does not have an SSN or ITIN, the IRS will still accept the application — but the form must be completed carefully to avoid rejection or delay.
Common errors on Form SS-4 for non-U.S. applicants include selecting the wrong entity type, leaving the responsible party section incomplete, and describing the business activity too vaguely. A correctly prepared Form SS-4 submitted by fax is the most reliable route to a timely EIN.
EIN and ITIN: Understanding When You Need Both
A foreign individual who owns a U.S. LLC may find that they need both an EIN for the entity and an ITIN for themselves personally. These are two separate numbers serving two separate purposes — the EIN identifies the business, and the ITIN identifies the individual owner for personal U.S. tax obligations.
The most common situation where both are needed is a foreign-owned single-member LLC. The LLC itself needs an EIN to file its required annual information return (Form 5472 attached to a pro forma Form 1120). The foreign owner may need a personal ITIN if they receive distributions that require U.S. reporting, if they file a Form 1040-NR, or if a U.S. payer requires a personal U.S. tax ID. The difference between an ITIN and an SSN is also relevant here: as a non-U.S. resident, you are not eligible for an SSN, which is what makes an ITIN the correct personal identifier when one is required.
The Annual Reporting Obligation for Foreign-Owned Single-Member LLCs
Many non-U.S. residents who form a U.S. LLC are unaware of a significant compliance requirement: a foreign-owned single-member LLC that is treated as a disregarded entity for U.S. tax purposes must file Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business) attached to a pro forma Form 1120 each year. This filing is required even if the LLC has no U.S.-source income and even if no U.S. tax is owed.
The penalty for failing to file Form 5472 is $25,000 per violation — one of the more significant automatic penalties in the U.S. tax system. An EIN is required to make this filing. Obtaining the EIN promptly after forming the LLC is therefore not just a banking convenience — it is a prerequisite for meeting a mandatory annual compliance obligation. nolly.com’s EIN application service covers the complete Form SS-4 preparation and submission process for non-U.S. residents.
Frequently Asked Questions
Can I get an EIN without an SSN or ITIN?
Yes. Non-U.S. residents without an SSN or ITIN can apply for an EIN by submitting Form SS-4 to the IRS by fax or by calling the IRS international line directly. The online EIN application at irs.gov requires an SSN or ITIN and is not available to applicants who have neither. The fax method typically returns an EIN within four business days of a correctly completed submission.
Does an EIN expire or need to be renewed?
No. An EIN is permanent and does not expire. Once issued by the IRS, it remains assigned to that entity indefinitely, even if the business becomes inactive or stops filing returns for a period. If you close a business and later reopen it, the IRS may reactivate the same EIN rather than issuing a new one. Unlike an ITIN — which can expire after three consecutive years of non-use — an EIN has no expiry mechanism.
Do I need an EIN if my U.S. LLC has no employees and no U.S. income?
In most cases, yes — if the LLC is foreign-owned and treated as a disregarded entity, it is still required to file Form 5472 annually, and an EIN is required to make that filing. Beyond the reporting obligation, most U.S. banks will not open a business account without an EIN, and U.S. payers who issue payments to the LLC will require one for information reporting. The absence of employees or U.S.-source income does not eliminate the EIN requirement for a properly registered U.S. entity.
Apply for Your EIN as a Non-U.S. Resident
nolly.com prepares and submits your EIN application — including Form SS-4 preparation, responsible party documentation, and IRS fax submission. We handle the complete process for non-U.S. residents who cannot use the standard online route.
nolly.com is a private, independent platform and is not affiliated with any government agency. ITINs and EINs are issued solely by the Internal Revenue Service. nolly.com assists clients in preparing and organizing documentation and does not issue, register, or approve any government identification number. This article is general information, not tax advice. Individual circumstances vary.
