Expanding into the U.S. market is a big milestone for Indian entrepreneurs. Whether you run an IT services company, a startup, or an e-commerce business, setting up a company in the U.S. comes with certain legal requirements. One of the most important steps is obtaining a US EIN number. If you’ve been wondering what it is, why you need it, and how to apply, this guide will simplify everything for you.
What Is a US EIN Number?
A US EIN number (Employer Identification Number) is a unique nine-digit number issued by the Internal Revenue Service (IRS). Think of it as a Social Security Number (SSN), but for businesses. It helps the U.S. government identify your company for tax purposes.
If you are planning to incorporate a company in the United States, you cannot skip this step. Without an EIN, you won’t be able to handle essential business activities such as filing taxes or opening a U.S. bank account.
Why Do You Need a US EIN Number?
Having a US EIN number is not optional—it’s mandatory for most business operations in the U.S. Let’s look at some key reasons:
Open a U.S. Bank Account – Most banks require an EIN to set up a business account.
File Taxes – Federal and state tax filings need an EIN.
Hire Employees – If you plan to employ staff in the U.S., you must have an EIN.
Set Up Payment Gateways – Platforms like Stripe and PayPal ask for your EIN.
Build Business Credibility – An EIN proves that your company is registered and recognized by the IRS.
In simple terms, the EIN is your company’s identity in the U.S. business ecosystem.
Who Needs a US EIN Number?
Not every individual needs one, but every business entity does. You should apply for a US EIN number if:
You are a non-U.S. resident registering a company in the United States.
You are setting up a Limited Liability Company (LLC) or a Corporation.
You want to open a U.S. bank account for your business.
You plan to hire employees or contractors in the U.S.
For Indian entrepreneurs, applying for an EIN is a must once your U.S. company is formed.
Step-by-Step Guide to Get a US EIN Number
The process may seem confusing for first-time founders, but here’s a simple breakdown:
Step 1: Incorporate Your Business
First, you must register your business in the U.S. as either an LLC or a C-Corp.
Step 2: Complete Form SS-4
The IRS issues EINs through Form SS-4. You must provide details like business structure, owner information, and U.S. address.
Step 3: Submit the Application
If you are a U.S. resident, you can apply online. However, as a foreign founder from India, you must usually apply via fax or mail.
Step 4: Wait for IRS Approval
The IRS will review your application and assign your US EIN number. This can take several weeks for international applicants.
Step 5: Receive Your EIN Confirmation
Once approved, you will receive a confirmation letter (CP 575) from the IRS with your EIN.
Challenges for Indian Entrepreneurs
While the process looks straightforward, Indian founders often face these challenges:
Completing the SS-4 form correctly.
Applying without a U.S. Social Security Number (SSN).
Dealing with IRS delays.
Understanding U.S. tax rules and compliance.
Even a small mistake can lead to rejection or significant delays in getting your EIN.
How USAIndiaCFO Helps with US EIN Number
This is where USAIndiaCFO comes in. They specialize in helping Indian entrepreneurs expand into the U.S. market and handle EIN applications with ease.
Here’s how they simplify the process:
Filling the SS-4 Form – Their experts complete the form accurately, avoiding costly errors.
IRS Communication – They handle correspondence with the IRS on your behalf.
Faster Processing – Their experience ensures a smoother and quicker application.
Bank Account Setup – Once your EIN is ready, they help open a U.S. bank account.
Ongoing Compliance – They assist with tax filings and CFO services, keeping your business compliant year after year.
With USAIndiaCFO, you avoid the hassle of navigating complex paperwork and instead focus on growing your business.
Example: How an Indian Founder Benefits
Suppose you run a SaaS company in Bengaluru and want to expand into the U.S. You incorporate a Delaware LLC but cannot open a U.S. bank account because you lack a US EIN number.
Here’s how USAIndiaCFO helps:
They file your SS-4 form with the IRS.
They obtain your EIN within a few weeks.
They guide you in opening a U.S. bank account.
They manage your annual compliance and taxes.
Soon, you are fully ready to invoice U.S. clients, accept payments in dollars, and operate like a U.S.-based company.
Tips for a Smooth EIN Application
To make the process stress-free, keep these points in mind:
Incorporate First – You must register your U.S. company before applying for EIN.
Stay Accurate – Ensure your SS-4 details match your company documents.
Start Early – Apply immediately after incorporation to avoid delays.
Seek Expert Help – Partner with USAIndiaCFO for hassle-free processing.
Think Long-Term – Remember, EIN is just the beginning. You also need compliance support.
Final Thoughts
The US EIN number is a vital requirement for Indian entrepreneurs starting a U.S. business. Without it, you cannot open a bank account, file taxes, or hire employees. While the process may feel complicated, expert guidance makes it simple.
With USAIndiaCFO, you can get your EIN quickly and correctly. Their team takes care of the paperwork, IRS communication, and compliance, so you can focus on building your U.S. business.
