Sarah K. Collins
Nov 02, 2025
5 min read

EIN Explained: What It Is, Why You Need It, and How to Get One

EIN Explained: What It Is, Why You Need It, and How to Get One

An EIN is essential for operating a U.S. business. This guide explains its purpose, benefits, and how to obtain one quickly—even as a non-resident.

What Is an EIN?

An Employer Identification Number (EIN) is the federal tax ID for your business.

Why You Need an EIN

  • Open a U.S. bank account
  • File tax returns
  • Hire employees
  • Access payment processors
  • Build business credit

How to Obtain an EIN

With SSN

Apply online through the IRS website—instant approval.

Without SSN (Foreign Owners)

Submit Form SS-4 by fax or mail. Processing usually takes 4–8 business days.

Common Errors

  • Incorrect responsible party
  • Wrong entity classification
  • Address formatting issues


Tags: Business Formation Taxes Finance
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