What Is an EIN (Employer Identification Number)?
An EIN (Employer Identification Number) is a United States federal tax identification number issued by the IRS to businesses, trusts, estates and other entities.
Also known as: Federal Tax ID Number, Federal Employer Identification Number (FEIN).
How EIN (Employer Identification Number) works
An EIN (Employer Identification Number) is requested from the Internal Revenue Service by an entity such as a company, partnership, LLC, estate or trust, and the number then identifies the entity on federal tax returns, withholding forms and many bank applications. The need for an EIN generally follows from entity type or activity, such as having employees or withholding tax on payments to a non-resident alien, rather than from where the owner lives. Domestic entities with a principal place of business in the United States and a responsible party holding an SSN or ITIN may use the online tool, whereas applicants based abroad generally apply by phone, or by fax or mail with Form SS-4. The IRS charges no fee, and filing duties follow from the entity's classification and activities rather than from the number itself.
EIN (Employer Identification Number) vs Individual Taxpayer Identification Number (ITIN)
Unlike an ITIN, which identifies an individual without SSN eligibility, an EIN (Employer Identification Number) identifies a business entity, estate, trust or employer for United States federal tax purposes.
Example
Illustrative example: A founder resident in Country A forms a single-member LLC in a United States state. Without a United States principal place of business, SSN or ITIN, the online tool is generally unavailable, so the founder faxes Form SS-4 and later uses the EIN for the LLC's bank account and IRS filings.
Common misconception
Myth: An LLC with an EIN but no US activity has no IRS filing obligations.
Reality: An EIN (Employer Identification Number) identifies the entity to the IRS, and annual reporting duties depend on entity classification and ownership rather than on business activity alone.
Frequently asked questions
Can a non-US resident get an EIN?
An EIN (Employer Identification Number) can generally be obtained by an entity based outside the United States, by phone or with Form SS-4 sent by fax or mail.
Is an EIN the same as an ITIN?
An EIN (Employer Identification Number) identifies entities, employers, estates and trusts, whereas an ITIN identifies individuals ineligible for a Social Security number.
Related terms
- Individual Taxpayer Identification Number (ITIN) — US number for individuals, often confused with the EIN
- Tax Identification Number (TIN) — Generic concept covering EINs and foreign TINs
- Form W-9
Related guides
- Incorporation options for location-independent entrepreneurs — Entity set-ups where an EIN is typically requested
- Accounting and bookkeeping for digital nomads — Filings and bookkeeping linked to an entity's EIN
Sources
Last verified: 2026-10-08. This entry is general information, not tax or legal advice; rules vary by country and change over time.
