If you're registering a company in the United States, sooner or later you'll run into three letters: EIN. Here's what they mean and why they matter.
What the EIN is
The EIN (Employer Identification Number) is the tax identification number issued by the IRS —the U.S. tax authority— to identify your company. Think of it as your business's ID with the tax authorities.
Why you need it
The EIN is one of the first things you'll use when getting your company off the ground. You need it to:
- Open a bank account in the company's name. Almost no bank opens a business account without it.
- File taxes, both federal and state.
- Hire employees, if you get to that point.
- Operate formally: invoice, sign contracts and work with payment platforms.
How to get it
The EIN is issued directly by the IRS, and the process differs depending on whether the members are U.S. residents or not. At Facturan2 we handle it as part of our company formation service, so you receive your company ready to operate, with its EIN included.
You don't need to be a citizen or resident to have a company with an EIN in the United States. The process can be done remotely.
Have questions about your case? Let's talk: every situation is different and we'll advise you with no obligation.