Why You Need an EIN and How to Get It Quickly

Introduction

This article is for entrepreneurs and developers from the CIS who work or plan to work with international clients. If you already have an LLC or are just preparing to open one, you'll encounter the concept of EIN in one of the early stages — even if you don't yet understand the role it plays in business.

EIN is not a formality or a "paper for the tax office." In practice, it is a key identifier of a company in the USA, without which banking and payment infrastructure do not function. That is why questions about EIN usually arise when connecting Stripe, PayPal, Shopify, or Amazon.

By the end of the article, you will understand what an EIN is, why it is needed for business, why it is impossible to build a payment system without it, and how the process of obtaining it goes — calmly, without legal overload and unnecessary stress.

What is an EIN

EIN (Employer Identification Number) is a US tax number used to identify a company. It can be compared to a TIN for business, but within the American system.

EIN is issued by the US tax authority (IRS) and is assigned specifically to the company, not the individual. It is used in all key processes: from opening a bank account to connecting payment systems and filing reports.

It is important not to confuse EIN with SSN. SSN is a personal number for individuals in the US, while EIN is a business number. For international entrepreneurs, this is a fundamental difference: EIN allows the company to operate independently of the owner’s US documents.

Why Does a Business Need an EIN

From a business perspective, EIN performs several basic functions.

Firstly, it is a legal identification of the company in the US. Without an EIN, your LLC essentially does not exist in operational terms — it cannot be properly "recognized" in government and commercial systems.

Secondly, EIN is necessary for working with banks. Opening a business account in the US or in fintech banks almost always requires providing an EIN.

Thirdly, EIN is used by all key services that work with businesses: payment providers, marketplaces, accounting, and financial tools. This is the basic level of infrastructure.

EIN and Payment Systems

In practice, most entrepreneurs realize the importance of EIN when they try to connect payment systems.

Stripe directly uses EIN to verify the business. Without it, connection is impossible, even if the company is already registered. EIN for Stripe is a mandatory requirement, not a recommendation.

The same logic applies to Shopify, PayPal, and Amazon. These platforms use EIN as the main identifier of the company in the US. It confirms that there is a real business before them, not a private individual.

Essentially, EIN is the foundation of the payment infrastructure. Without it, the company cannot fully accept payments, work with subscriptions, or scale sales.

Who Can Obtain an EIN

A common question is whether an SSN is needed to obtain an EIN. The short answer: no, it is not required.

An EIN can be obtained by a non-resident of the US. This is standard practice for international business, and the IRS provides for such scenarios.

EIN is suitable even for single-member LLCs — companies with one owner. Even if you are the sole founder and do not plan to hire employees, the EIN is still used as the main company number.

Citizenship and residence of the owner are not obstacles. The important factor is the existence of the company in the US.

How the Process of Obtaining an EIN Works

The process of obtaining an EIN is quite straightforward.

Typically, the application requires:

• company details (name, state of registration);
• information about the owner or responsible person;
• a description of the business activities.

The application is submitted to the IRS in the prescribed format. Depending on the submission method and situation, the process can take from a short time to several working days.

It is important to note that obtaining an EIN is an administrative step, not a complex legal procedure. It does not require deep knowledge of American law and is not related to business valuation.

What to Do After Receiving an EIN

After obtaining an EIN, the company moves to the next level of readiness to operate.

EIN is used:

• when opening a bank account;
• when connecting Stripe, PayPal, Shopify, Amazon;
• in financial and accounting processes;
• within the internal structure of the company as the main identifier.