What Is an EIN? A Basic Guide for Foreign Corporations Without a US Permanent Establishment

What is an EIN?

An EIN (Employer Identification Number) is a 9-digit taxpayer identification number (for example, 12-3456789) that the Internal Revenue Service (IRS) assigns to business entities. Despite the word “Employer” in its name, it is also issued to companies with no employees. In the United States it is sometimes called a “Federal Tax ID.”

There are three main types of US taxpayer identification numbers (TINs). Foreign corporations obtain an EIN.

Number	Who it is for	Issued by
SSN (Social Security Number)	US citizens and individuals authorized to work	Social Security Administration (SSA)
ITIN (Individual Taxpayer Identification Number)	Foreign individuals and others who cannot obtain an SSN	IRS
EIN (Employer Identification Number)	Corporations, partnerships, trusts and other entities	IRS

Three key points:

• Foreign corporations can obtain one. A foreign corporation can apply for an EIN in its own name, even without a US subsidiary or branch.
• Having an EIN does not mean being taxed in the US. An EIN is only an identification number. Whether a US filing obligation arises depends on the actual business activities and on tax treaties.
• As a rule, one per entity. Once issued, the same EIN continues to be used even if a US filing obligation arises later.

When does a foreign corporation without a PE need an EIN?

Even without a PE, an EIN is typically needed in two situations: when the company must file a return with the IRS, and when it must give a US payer a US taxpayer identification number. The main situations are as follows.

Situation	EIN needed?	Notes
Conducting a US trade or business but claiming exemption because there is no PE under a tax treaty	Generally yes	Even if exempt, Form 1120-F (foreign corporation return) and Form 8833 (treaty-based position disclosure) must be filed
Filing a “protective return” as a precaution, while taking the view that US activities are not taxable	Yes	The IRS recommends filing. Without it, deductions are lost if the activities are later found to be taxable. To keep deductions, the return must generally be filed within 18 months of the due date
Claiming a refund of tax withheld in the US	Yes	Refunds are claimed on Form 1120-F
Claiming a treaty reduction or exemption on dividends, interest, royalties, etc. using Form W-8BEN-E	Depends	No EIN is needed if the company enters its home-country taxpayer number (for example, the Unified Social Credit Code for a Chinese company, or the national tax number for a European company). Not needed at all for dividends and interest on publicly traded securities, among others
Setting up a US subsidiary or LLC	Yes (for the US entity)	The US entity needs its own EIN, separate from the parent. A single-member LLC wholly owned by a foreign corporation needs an EIN to file Form 5472
Hiring employees in the US	Yes	Used for payroll withholding and employment tax returns
Buying or selling US real estate (FIRPTA)	Needed in practice	Used for withholding refunds, returns, IRC 897(i) elections, etc.
Transactions subject to US excise tax (Form 720, etc.)	Yes	Applies in certain industries

An EIN may also be requested when opening a US bank account, registering with payment services or marketplaces, or registering for state sales tax. These are not federal tax obligations: they depend on the counterparty’s internal policies or state rules, so whether an EIN is requested varies from case to case. How state sales tax registration works is covered in our guide to selling into the United States.

Key point: a PE (permanent establishment) and a “US trade or business” are different concepts. Even without a PE, a company found to be engaged in a US trade or business must file a return, even if a tax treaty reduces the tax to zero. At that point, an EIN becomes necessary.

Glossary

Term	Meaning
Form 1120-F	The US income tax return of a foreign corporation
Form 8833	Disclosure form used when claiming, under a tax treaty, treatment different from US tax law. Attached to Form 1120-F
Form W-8BEN-E	A certificate a foreign entity gives to a US payer. It confirms foreign status and any treaty reduction or exemption from withholding. Not sent to the IRS
Form 5472	An information return in which foreign-owned US corporations and similar entities report transactions with related parties
US trade or business	Conducting business in the United States on a continuous and regular basis. A broader concept than a PE
Protective return	A return filed, even when the company believes it is not taxable, to preserve its right to deductions if it is later found to be taxable
FIRPTA	The regime governing withholding and related rules when foreign persons sell US real property
IRC 897(i) election	An election allowing certain foreign corporations to be treated as US corporations for FIRPTA purposes
Form 720	The federal excise tax return for certain transactions, such as fuel and air transportation

When is an EIN not needed, and where do views differ?

Cases where an EIN is generally not needed

• No US trade or business and no US-source income. For example, a company that only exports from China or Europe to US customers, with no staff, inventory or agents in the United States.
• US-source income exists, but tax is fully settled through withholding. The IRS does not require Form 1120-F from foreign corporations that are not engaged in a US trade or business and whose full tax has been withheld at source.
• Receiving payment for services performed in the home country (China, Europe, etc.). If the services are performed outside the United States, the income is generally not US-source and is not subject to withholding.
• Entering the home-country taxpayer number when claiming treaty benefits on Form W-8BEN-E.

Points where views differ or the answer depends on the facts

The following issues have no clear-cut rule: professionals disagree, or the conclusion depends on the facts.

1. Whether US activities amount to a “US trade or business.” US tax law does not clearly define this term, so it is judged on the overall facts, such as the continuity and scale of the activities. For example, views differ on whether keeping inventory in US warehouses and selling to US customers, as through Amazon FBA, qualifies.
2. Whether a US warehouse or agent constitutes a PE. Many tax treaties exclude facilities used solely for storage or delivery from the definition of a PE. However, the treatment of third-party warehouses, and whether an agent has authority to conclude contracts, require case-by-case analysis.
3. Whether to file a protective return. The IRS says a return should be filed even when a company concludes it is not taxable. Practitioners differ on whether to file, weighing preparation costs against risk. Filing requires an EIN.
4. State tax treatment. Many states are not bound by federal tax treaties and apply their own standards (such as “economic nexus” based on sales) to determine state income tax and sales tax obligations. Even without a federal PE, state registration may be required, and an EIN may be requested at that point. Rules vary by state.
5. Payer (withholding agent) practice. Whether a payer accepts a Form W-8BEN-E without an EIN depends on its internal procedures. Even where the rules do not require one, a payer may ask for an EIN in practice.

How to obtain an EIN

Applying for an EIN is free, and the application is Form SS-4. Foreign corporations with no address or principal place of business in the United States cannot use the IRS online application and must apply by phone, fax or mail.

Method	Available to foreign corporations	Typical time to issue	Contact details (as of October 2026)
Phone	Yes (international applicants only)	Issued during the call	+1-267-941-1099 (not toll-free), Monday–Friday, 6:00 a.m.–11:00 p.m. US Eastern time
Fax	Yes	Generally within 4 business days	From outside the US: +1-304-707-9471 / From within the US: 855-215-1627
Mail	Yes	About 4 weeks	Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999
Online	No	—	Only for applicants with a US address or equivalent whose responsible party has an SSN, ITIN or EIN

Fax numbers and other details may change without notice, so check the latest IRS guidance before applying.

Application steps

1. Complete Form SS-4. Enter the company name exactly as it appears in the articles of incorporation or other formal documents, and write the country name in full in the address.
2. Enter the responsible party. Name the individual who ultimately owns or controls the company (usually its legal representative). If the responsible party has no SSN or ITIN and is not eligible for one, enter “Foreign” or “N/A” in the number field (line 7b).
3. Select the reason for applying (line 10). Where the only purpose is to claim treaty benefits and there is no US filing obligation, the IRS’s taxpayer identification number (TIN) guidance page says to check “Other” and write, for example, “For Tax Treaty Purposes Only” or “For W-8BEN Purposes Only.” The same page says lines 11–17 that do not apply should be marked “N/A.” However, the Form SS-4 instructions (December 2025 revision) state that lines 16 and 17 (business activity) are required, so the two sources are not consistent. It is safer to describe the business activity on lines 16 and 17.
4. Sign and submit. For foreign applicants, any duly authorized person (for example, a division manager) may sign. If an agent (third-party designee) handles the application, the signature section must be completed.
5. Receive the EIN and keep the notice. For phone applications, the IRS representative may ask you to fax or mail the signed Form SS-4 within 24 hours.

Note: applying for the same company by more than one method may result in duplicate EINs. Use only one method. EIN issuance is also limited to one per responsible party per day.

After obtaining an EIN

• Respond promptly to any IRS notice asking you to file. A foreign corporation that obtains an EIN solely for treaty purposes is normally recorded as having no filing requirement. If it nonetheless receives a notice asking it to file, the IRS advises responding promptly that it has no filing requirement. Ignoring the notice may lead the IRS to assess tax on its own.
• Report changes within 60 days. Report changes in the responsible party, address or location on Form 8822-B. A change of responsible party must be reported within 60 days.
• Do not apply for a new EIN. If a US filing obligation arises later, continue to use the EIN originally issued rather than applying for a new one.
• If registering to do business in a state, check beneficial ownership information (BOI) reporting. Under the final rule effective August 14, 2026, companies formed in the United States no longer need to file BOI reports. However, foreign companies registered to do business in a US state remain subject to reporting and must report their foreign beneficial owners. This obligation arises from state registration, not from obtaining an EIN.

Frequently asked questions

If we obtain an EIN, will we have to pay US corporate income tax?

No. An EIN is only an identification number, and obtaining one does not by itself create a tax liability. Whether the company is taxed in the United States depends on its business activities and on tax treaties.

Can we apply if our representative has no SSN or ITIN?

Yes. Enter “Foreign” or “N/A” on line 7b of Form SS-4. There is no need to obtain an ITIN first.

Can the parent company in our home country and our US subsidiary use the same EIN?

No. EINs are issued per entity. A US subsidiary or LLC needs its own EIN.

Can an agent apply on our behalf?

Yes. Designate the agent in the “Third Party Designee” section of Form SS-4, and have an authorized person of the company sign. The agent’s authority ends once the EIN is issued.

A business partner has asked us to enter an EIN on Form W-8BEN-E. Do we have to obtain one?

Under the rules, an EIN may not be needed if you enter your home-country taxpayer number when claiming treaty benefits. However, some payers require an EIN as a matter of internal practice, so check with your business partner and consider obtaining one if necessary (see point 5 under “Points where views differ”).

We sell in the US through Amazon and similar platforms. Do we need an EIN?

It depends on how you sell. The answer changes depending on whether you ship directly from China or Europe, whether you keep inventory in US warehouses, and whether state sales tax registration is required. Keeping inventory in the United States raises the disputed question of whether there is a US trade or business or a PE. We recommend having a professional review the facts.

Summary

An EIN is the gateway number for a foreign corporation dealing with US tax procedures. Even without a US PE, it is needed for returns claiming treaty exemption, refunds of withholding tax, setting up a US subsidiary, hiring employees and similar situations. On the other hand, it is not needed in some cases, such as when there are no US activities and tax is fully settled through withholding.

Whether the company is engaged in a US trade or business, whether to file a protective return, and how state taxes apply are issues on which views often differ. We recommend reviewing your transaction structure and confirming with a US tax professional whether you need an EIN. If you would like to discuss a specific case, contact us.

References (official sources)

• Instructions for Form SS-4 (IRS)
• Taxpayer identification numbers (TIN) (IRS)
• Instructions for Form W-8BEN-E (IRS)
• Instructions for Form 1120-F (IRS)
• FinCEN Permanently Ends Beneficial Ownership Reporting Requirements (US Department of the Treasury, August 11, 2026)

This article provides general information based on public sources as of October 2026 and is not individual tax or legal advice.