EIN
An EIN (Employer Identification Number) is a nine-digit tax ID issued by the US Internal Revenue Service. If you're a European founder setting up a US LLC, you'll need one to open a business bank account, file taxes, and build US business credit.
What is an EIN?
An EIN (Employer Identification Number) is a unique nine-digit identifier assigned by the US Internal Revenue Service (IRS). Think of it as a tax ID number for your US business entity, similar to a VAT number in Europe but used exclusively for US federal tax purposes.
The format is always XX-XXXXXXX. For example, a European founder's new Wyoming LLC might receive EIN 12-3456789.
Who Needs an EIN?
Most US business structures require an EIN:
- Single-member LLCs taxed as corporations
- Multi-member LLCs (by default or by election)
- Any LLC with employees
- Corporations and partnerships
Sole proprietors without employees can sometimes use their Social Security Number (SSN) or ITIN instead, but an EIN is strongly recommended for business banking and credit building.
How EINs Fit Your US Business Journey
An EIN is essential for three reasons:
Banking: US business banks require an EIN to open a dedicated business account. This separates your personal and business finances, which is legally and operationally critical.
Credit building: Business credit bureaus (Dun & Bradstreet, Equifax) link credit history to your EIN, not your personal SSN or ITIN. Without it, you cannot build tradeable US business credit.
Tax filing: Your LLC files annual tax returns using your EIN. Even a single-member LLC taxed as a sole proprietor should apply for one if you want to scale.
Getting an EIN as a Foreign Founder
The most common method is Form SS-4 (Application for an Employer Identification Number), filed by fax to the IRS. Here's the standard flow:
- Complete Form SS-4 online or by hand
- Fax it to the IRS (number depends on your state; Wyoming is 304-262-9010)
- Receive your EIN by phone or email within 1-2 weeks, typically 2-4 business days
You do not need a US visa, SSN, or ITIN to apply for an EIN. You do need proof of your LLC formation (Certificate of Formation). Many founders find the process straightforward but tedious; Founders Credit handles the complete EIN application as part of its done-for-you LLC setup service.
EIN vs. ITIN: What's the Difference?
| Aspect | EIN | ITIN |
|---|---|---|
| Purpose | Business tax ID | Personal tax ID |
| Issued by | IRS | IRS |
| Used for | LLC, corporations, partnerships | Individual income, self-employment |
| Visa required | No | No |
| Can open business bank account | Yes (required) | Rarely accepted; use EIN instead |
Common Pitfalls
Confusing EIN with ITIN: An ITIN is for personal tax filing. Your LLC needs an EIN, even if you don't have a US SSN.
Delaying EIN application: Without it, you cannot open a business bank account or apply for credit. Get it early in your LLC formation timeline.
Filing Form 5472 without clarity: Foreign-owned single-member LLCs electing corporate taxation (or foreign-owned multi-member LLCs) must file Form 5472 (Information Return of a Foreign Disregarded Entity or Foreign Branch) annually, regardless of income, with a penalty of up to $25,000 for missed filings. Form 5472 is informational and does not calculate your tax liability itself; you file it alongside your corporate return (Form 1120-S or 1120).
Next Steps
Once you have your EIN, your next priorities are:
- Open a US business bank account (Mercury, Relay, Wise, or traditional banks all accept EINs for foreign-owned LLCs)
- Apply for an EIN-linked DUNS number (Dun & Bradstreet) to build business credit
- File annual tax returns on time to maintain compliance
If the process feels overwhelming, Founders Credit automates LLC formation, EIN application, and bank account setup end-to-end, so you can focus on growing your business.
Frequently asked questions
Do I need a US visa or SSN to get an EIN?
No. The IRS issues EINs to foreign entities and individuals without a US visa or Social Security Number. An ITIN is also not required.
Can I use my ITIN instead of an EIN for my LLC?
No. Your LLC must
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