Is an Existing US Company Required to Apply for an EIN? The Truth Revealed!

Is It Necessary to Have an Existing U.S. Company to Apply for an EIN? Let’s Uncover the Truth!

In today’s globally integrated economy, more individuals and businesses are seeking to enter the U.S. market. Whether it’s launching a cross-border e-commerce business, investing in real estate, or opening a U.S. bank account, many encounter the same question Is it necessary to already have a U.S. company to apply for an Employer Identification Number EIN? While this question may seem straightforward, the answer involves understanding IRS regulations, application procedures, and the applicant’s personal or business background. This article explores the facts behind this common query, drawing on recent news and policy updates.

1. What is an EIN?

The Employer Identification Number EIN, issued by the Internal Revenue Service IRS, is a unique identifier assigned to businesses or organizations for tax-related purposes. Similar to a Social Security Number for individuals, the EIN is used not only for tax reporting but also for opening business bank accounts, applying for business licenses, and engaging in various commercial activities.

2. Do You Need an Existing U.S. Company to Apply for an EIN?

According to the IRS, having an already-registered U.S. company is not a mandatory requirement to apply for an EIN. This means that even if you haven’t officially registered a company in the U.S., you can still apply for an EIN. However, there are a few important points to consider

1. Applicant’s Identity and Purpose Determine the Need for a Business Entity

If you're applying as an individual-for example, to open a U.S. bank account or make investments-the IRS allows you to apply for an EIN without a formal business entity. You will need to clearly state your purpose on the application and select an appropriate business type, such as Sole Proprietorship or Trust.

2. A Business-in-Formation Is Usually Required

While the IRS does not require a fully registered company, it generally expects that you are in the process of forming a business. This means you should have a legitimate business purpose and plan to formally register your company in the near future. For instance, you may be preparing to register a Limited Liability Company LLC in the U.S., but need an EIN beforehand to open a bank account or sign contracts.

3. Assistance from Third-Party Service Providers

For many international applicants, navigating the EIN application process directly with the IRS can be challenging due to language barriers or unfamiliarity with U.S. procedures. Many opt to use U.S.-based registered agents or professional service providers to assist with the application. These agencies typically help complete the SS-4 form EIN application and communicate with the IRS on your behalf. However, they often require documentation such as a letter of intent to register a company or other supporting materials.

3. Recent News and Case Studies

According to a June 2025 Wall Street Journal report, the rise of remote work and digital nomadism has led more foreign freelancers and small entrepreneurs to explore setting up virtual businesses in the U.S. Many of these applicants have not yet formally registered a company but seek an EIN to enhance their credibility in the U.S. market.

One such example is a freelance graphic designer from China who successfully applied for an EIN without having a registered U.S. company and later opened a U.S. bank account. She shared At first, I was worried that not having a formal company entity would affect my application. But with the help of a professional advisor, I chose the 'Sole Proprietor' category and got my EIN smoothly.

In December 2025, the IRS updated its EIN application guidelines, explicitly stating that eligibility for an EIN is based primarily on the applicant’s intent to engage in business activity, not on whether the company has already been registered. This update reaffirms the flexibility of the EIN application process.

4. Basic EIN Application Process

Regardless of whether you already have a U.S. company, the EIN application process generally follows these steps

1. Determine Your Business Type Examples include LLC, Corporation, Sole Proprietor, etc.

2. Prepare Required Information This includes the applicant’s name, address, business name if applicable, and formation date if applicable.

3. Complete Form SS-4 This can be done online via the IRS website, or submitted by mail or fax.

4. Submit the Application International applicants are typically advised to submit by fax or online.

5. Receive the EIN In most cases, the EIN will be provided via email or phone within a few business days.

Starting in 2025, the IRS has strengthened identity verification for international applicants. It is recommended to provide valid contact information and keep all application records for future reference.

5. Common Misconceptions Clarified

Myth 1 You Must Register a Company Before Applying for an EIN

As discussed, while EINs are primarily used for businesses, it's not required to have an officially registered company before applying. A clear business intent is sufficient.

Myth 2 Only U.S. Citizens or Residents Can Apply for an EIN

In fact, non-U.S. residents who meet the application requirements can also obtain an EIN. Many foreign investors and entrepreneurs use this method to start their U.S. operations.

Myth 3 An EIN Can Be Applied for Multiple Times

Each business or entity is entitled to only one EIN. Reapplication is only permitted in cases of significant structural changes, such as mergers or reorganizations.

6. Conclusion

In summary, it is not necessary to have an existing U.S. company to apply for an EIN. As long as you have a clear business purpose or plan, you can apply for an EIN even before officially registering your company. However, to ensure a smooth application process, it’s advisable to prepare all necessary documents in advance and seek professional assistance when needed.

With the U.S. market becoming increasingly accessible to global entrepreneurs, the EIN application process has also become more flexible and transparent. Whether you're a cross-border entrepreneur, a freelancer, or an international investor, you can strategically plan your U.S. business activities and take your first confident step into the American market.