EIN
An Employer Identification Number (EIN) is the 9-digit federal tax ID assigned by the IRS to a business entity. Also called a Federal Tax Identification Number (FEIN), it is required for opening business bank accounts, hiring employees, filing federal tax returns, applying for business credit and loans, obtaining business licenses, and most other institutional business operations. It is the business equivalent of a Social Security Number and one of the first administrative steps after incorporation.
How to obtain an EIN: file IRS Form SS-4, either online (the fastest method; available at IRS.gov, takes about 15 minutes if all info is ready, EIN issued immediately for US-based responsible parties), by fax (1 to 2 business days), by mail (4 to 6 weeks), or by phone for international applicants (calling the IRS international line). Required information: the entity's legal name and address, the type of entity (LLC, C-corp, partnership, etc.), the date of formation, the responsible party (a US-based individual with a Social Security Number or ITIN; founders without US residency face additional complications), reason for applying (started new business, hired employees, opened bank account, etc.), and expected number of employees. The EIN should be obtained immediately after incorporation (before opening a bank account, before signing any contracts, before hiring anyone). Cost: free directly from the IRS; third-party services charge $50 to $300 to file on your behalf, which is unnecessary for most US founders but useful for international founders who don't have US tax IDs. The 2020s reality: international founders without ITINs or SSNs face significant friction obtaining an EIN; services like Stripe Atlas, Firstbase, and doola handle this complexity as part of their formation packages, which is why those services dominate the international-founder market.
Ryan's Take
The EIN is one of those administrative things that takes 15 minutes if you're a US founder and 6 weeks if you're an international founder who doesn't know the workarounds. The cost of getting it wrong: every downstream step (bank account, contracts, payroll) waits until the EIN is issued. If you're a US founder, file Form SS-4 online the same day you incorporate; you'll have the EIN before you finish your coffee. If you're an international founder, use Stripe Atlas, doola, or Firstbase from the start; they handle the EIN process plus the dozen other administrative pieces that are unnecessarily hard from outside the US.
What founders get wrong: Paying a third-party service $200+ to obtain an EIN that they could have gotten free directly from the IRS in 15 minutes. The IRS online application is straightforward for US-based founders. Pay for help only if you're an international founder without a US tax ID, in which case the help is genuinely needed.
Related: Incorporation · Delaware C-Corp · LLC
FAQ
What is an EIN?
Employer Identification Number, the 9-digit federal tax ID number assigned by the IRS to a business entity. Required for opening business bank accounts, hiring employees, filing federal tax returns, applying for business credit, obtaining business licenses, and most institutional business operations. Also called a Federal Tax Identification Number (FEIN).
How do I get an EIN?
File IRS Form SS-4 online (fastest, ~15 minutes, EIN issued immediately for US-based responsible parties), by fax (1-2 business days), by mail (4-6 weeks), or by phone for international applicants. Required info: entity name and address, type of entity, formation date, responsible party (US-based SSN or ITIN typically required), and reason for applying.
How much does an EIN cost?
Free directly from the IRS. Third-party services charge $50-$300 to file on your behalf, which is unnecessary for most US founders but useful for international founders without US tax IDs. Services like Stripe Atlas, Firstbase, and doola handle the EIN process as part of their formation packages.
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