Form · 4 min read
EIN and ITIN: US tax IDs explained for founders
The EIN is the number that unlocks banking, Stripe and payroll. Getting one without an SSN is entirely possible — and the widespread claim that you need an ITIN first is wrong.
The short answer
An EIN is a free federal tax ID for your business, issued by the IRS. US founders with an SSN get one online in minutes. Founders without an SSN apply on Form SS-4 by fax or mail, writing "Foreign" where the form asks for the responsible party's tax ID. You do not need an ITIN first.
Three acronyms, three completely different purposes, and an industry that has managed to blur them into one expensive muddle. Getting this right is worth an afternoon of your attention, because getting it wrong is worth months of your life.
| SSN | ITIN | EIN | |
|---|---|---|---|
| Identifies | A US person | An individual with a US filing obligation but no SSN eligibility | A business |
| Who gets one | Citizens, permanent residents, some visa holders | Non-resident individuals who must file | Any business entity |
| Issued by | Social Security Administration | IRS | IRS |
| Cost | Free | Free | Free |
| Needed to open a business bank account | No | No | Yes |
| Needed to get an EIN | No | No | — |
What an EIN is for
It is the company's federal tax identification number, and almost everything useful downstream asks for it.
- Opening a business bank account — no serious institution will proceed without one.
- Onboarding to Stripe, PayPal, Shopify Payments and the app stores.
- Hiring employees or contractors and issuing 1099s.
- Filing federal returns, including the Form 5472 that foreign-owned LLCs must file.
- Applying for business credit in the company's name.
You need one even if you will never employ anybody. The "employer" in Employer Identification Number is historical, not a condition.
If you have an SSN or ITIN
Use the IRS online application. It runs during IRS business hours, takes about fifteen minutes, and issues the number at the end of the session. Download the CP 575 confirmation immediately — the IRS does not reissue it, and getting a replacement means requesting a 147C letter instead.
If you have neither — the SS-4 route
The online application is closed to you, but the EIN is not. You complete Form SS-4 and submit it by fax or post.
The lines that matter
| Line | What it asks | What trips people up |
|---|---|---|
| 1 | Legal name of the entity | Must match the formation certificate exactly, including "LLC" |
| 4a–4b | Mailing address | Your address abroad is acceptable. It does not need to be in the US |
| 7a | Responsible party name | A human being — the owner. Not the company, not the agent |
| 7b | Responsible party's SSN/ITIN/EIN | Write "Foreign" if you have none. This is the field the myth is built on |
| 9a | Type of entity | Tick the box matching what you actually formed |
| 10 | Reason for applying | "Started new business" for a new entity |
| 18 | Prior EIN | Answer honestly — a duplicate application delays everything |
EIN as part of formation
The SS-4 prepared and submitted for foreign owners at the same time as the state filing, so the number is in progress from day one instead of week three.
See what's includedWhen you genuinely need an ITIN
An ITIN is for individuals with a personal US tax filing obligation who cannot get an SSN. You may need one if you must file a Form 1040-NR, if you are claiming a treaty benefit personally, or if you are a partner in a partnership that must withhold on your share.
You do not need one to own an LLC, to get an EIN, or to open most business bank accounts. Apply for it when a filing obligation actually arises, not pre-emptively.
When the application is rejected
The online application returns a reference number rather than an explanation, which is unhelpful by design. The most common is reference 101 — a name conflict, or the system cannot verify the entity. It usually means filing on paper instead, where a human reviews it.
The other frequent cause is a genuine duplicate: applying twice because the first attempt seemed to fail. Check before you reapply. Two EINs on one entity is a tidier problem to avoid than to fix.
Where to go next
With the EIN in hand, banking is the immediate next step, and it is where founders outside the US meet the real friction. If you have not formed the entity yet, start at formation.
Frequently asked questions
- How much does an EIN cost?
- Nothing. The IRS issues EINs free of charge. Any service charging for an EIN is charging for the administration of applying on your behalf, not for the number itself. That can be worth paying for if you are filing on paper from abroad, but you should know what you are buying.
- Can I get an EIN without an SSN?
- Yes. Complete Form SS-4 and submit it by fax or mail rather than using the online application, which requires an SSN or ITIN. On line 7b, the responsible party's tax ID field, enter "Foreign". The IRS issues the EIN in the ordinary course.
- What is the difference between an EIN and an ITIN?
- An EIN identifies a business to the IRS. An ITIN identifies an individual who has a US tax filing obligation but is not eligible for a Social Security Number. They serve completely different purposes and neither is a prerequisite for the other.
- How long does an EIN take?
- With an SSN, the online application issues one immediately. Without an SSN, processing is measured in weeks and the IRS does not reliably publish current times for international applicants. Apply the day your entity exists, because banking and payment processing both wait on the number.
- I lost my EIN letter. What now?
- Ask the IRS for a 147C letter, which confirms an existing EIN. Banks accept it in place of the original CP 575. It is requested by telephone through the IRS Business and Specialty Tax Line, and international callers can use the dedicated international number.
Topics in this guide
- EIN rejected with reference number 101: what it means and how to fix itThe online application gives you a number and no explanation. Reference 101 is the most common, and in most cases the fix is to stop using the online form.
- EIN vs ITIN vs SSN: which number you actually needConfusing these three costs international founders months and unnecessary fees. The distinction is simple once someone states it plainly.
- Lost your EIN confirmation letter? How to get a 147CYou have the number but nothing proving it, and a bank wants documentation. This is the fix, and it is a phone call rather than a form.
Sources
- IRS — Apply for an Employer Identification Number
- IRS — About Form SS-4
- IRS — Individual Taxpayer Identification Number (ITIN)
- IRS — Responsible parties and nominees
Last reviewed . Fees, deadlines and government processing times change — verify against the primary source before acting.
Founders 8 does not provide tax advice. Tax residency depends on facts and rules specific to each jurisdiction — review your position with a qualified adviser.