EIN (Employer Identification Number)
The Employer Identification Number (EIN) is the nine-digit federal tax identifier issued for free by the IRS to every U.S. legal entity, the functional equivalent of the French SIRET number.
Definition
The Employer Identification Number, also known as the Federal Tax Identification Number, is a nine-digit number formatted XX-XXXXXXX assigned by the Internal Revenue Service (IRS) to every U.S. legal entity. It identifies the entity with the federal tax authorities, allows it to file returns, open a bank account, hire employees and issue W-2, W-9 and 1099 forms. The application is made on Form SS-4, free of charge, either online at irs.gov if the responsible party holds a Social Security Number or an ITIN, or by fax or mail for foreign applicants (4 to 6 weeks turnaround).
In plain English
Without an EIN, your LLC or C-Corp does not really exist: no bank account, no Stripe, no Mercury, no payroll. It is the first operational building block after the Certificate of Incorporation. For a French founder without an SSN or ITIN, the online application is unavailable: you must fax Form SS-4 to the IRS international applicant line (304-707-9471) and wait 2 to 4 weeks, sometimes more. There is a well-known workaround: call the IRS international hotline at 267-941-1099 to obtain the EIN immediately over the phone, provided you can spell your name, the company address and the reason for the application in English. The number is communicated orally and then confirmed by mail within 4 to 6 weeks.
RWM transatlantic case study
For a French founder who incorporates a Delaware C-Corp, obtaining the EIN follows immediately after filing the Certificate of Incorporation. The responsible party listed on Form SS-4 must be a natural person exercising effective control over the entity, not a nominee or a registered agent. For a non-resident alien without an ITIN, we fill in box 7b with the mention "Foreign" and prepare a cover letter explaining the absence of an SSN. Once the EIN is obtained, opening a bank account remains the most fragile step: Mercury, Brex and Relay accept non-resident founders with a fresh EIN and a filed BOI Report, while traditional banks (Chase, Bank of America) generally still require an in-person visit. Holding an EIN does not relieve the entity of its annual filing obligations: Form 1120 for a C-Corp, Form 1065 for a multi-member LLC, Form 5472 for any entity owned 25 percent or more by a foreign person.
Points to watch
- Free application: beware of third-party sites charging 200 to 500 dollars for this service.
- The responsible party must be a natural person, not an entity.
- Without an SSN or ITIN, fax Form SS-4 to 304-707-9471 or call 267-941-1099 (Monday to Friday, 6 a.m. to 11 p.m. ET).
- Form 5472 is required for any U.S. entity owned 25 percent or more by a non-resident, with penalties up to 25,000 dollars.
- The EIN is not transferable on a sale: the buyer keeps the existing EIN if the entity does not change its legal form.