An Employer Identification Number is a nine-digit number the IRS issues to identify a business for tax purposes. It is the company's tax ID, not a personal one. A US LLC generally needs an EIN to open a bank account, apply to payment processors and file federal returns, and it is free to obtain directly from the IRS.
Why does EIN matter for founders?
Non-residents cannot use the instant online application, which requires a responsible party with a US taxpayer number. You apply on Form SS-4 by phone, fax or mail instead, and processing commonly takes weeks. Because banking and payments both wait on the EIN, it is usually the slowest step in a launch.
Where can I read more about EIN?
Note: A plain-English definition for orientation, not legal or tax advice. Rules change - last checked 2026-07-21.