EIN for Stripe setup

When and why you need an EIN (overview) - An EIN is the federal Employer Identification Number (9 digits) used to identify businesses for tax purposes. You generally need one if you: hire employees; operate as a corporation or partnership (including multi-member LLCs); file employment, excise, or alcohol/tobacco/firearms tax returns; withhold taxes on payments to nonresident aliens; or maintain certain retirement plans. (IRS) - Even when not strictly required (many sole proprietors/single-member LLCs taxed as disregarded entities can use an owner SSN), owners frequently obtain an EIN to protect privacy, open business bank accounts, build business credit, and simplify vendor/tax reporting. (Stripe, SBA)

When and why you need an EIN (overview) - An EIN is the federal Employer Identification Number (9 digits) used to identify businesses for tax purposes. You generally need one if you: hire employees; operate as a corporation or partnership (including multi-member LLCs); file employment, excise, or alcohol/tobacco/firearms tax returns; withhold taxes on payments to nonresident aliens; or maintain certain retirement plans. (IRS)

• Even when not strictly required (many sole proprietors/single-member LLCs taxed as disregarded entities can use an owner SSN), owners frequently obtain an EIN to protect privacy, open business bank accounts, build business credit, and simplify vendor/tax reporting. (Stripe, SBA)

Differences between EIN and SSN/ITIN and when to use each - SSN

personal TIN for individuals; sole proprietors may use SSN on returns but exposing SSN is a privacy risk. (IRS / Stripe) - ITIN: used by individuals who are not eligible for an SSN but need to file US taxes. (IRS) - EIN: business TIN for entities; required for most entity types and for payroll/employer reporting. (IRS)

How to obtain an EIN (step-by-step and timelines) - Online (fastest)

Use the IRS EIN online assistant (available to entities with principal business in US/territories); receive EIN immediately upon successful submission. (IRS) - Fax: Submit completed Form SS-4; typically receive EIN back by fax within ~4 business days. (IRS) - Mail: Mail Form SS-4; processing can take up to ~4 weeks. (IRS) - Phone (international applicants): Call specified IRS international EIN number to apply by phone; receive EIN at end of call. (IRS) - Form SS-4 contains required inputs (business legal name, trade name, physical/mailing address, responsible party name and TIN, entity type, reason for applying, date business started, primary activity). Use the SS-4 PDF and SS-4 instructions when filling. (IRS Form SS-4 + instructions) 4) EIN requirements by entity type and special cases - Sole proprietor: can use SSN; get EIN if hiring employees, operating retirement plan, or for privacy/banking reasons. (Stripe / IRS) - Single-member LLC (disregarded entity): can use owner SSN for federal tax reporting unless electing corporate taxation; many still obtain EIN for banking and vendor forms. If treated as corporation, an EIN is required. (IRS Form SS-4 instructions / Stripe) - Multi-member LLC / partnership: EIN required. (IRS) - Corporations (C and S): EIN required. (IRS) - Foreign-owned single-member LLCs: special rules — generally need an EIN when the LLC has US trade or hires employees or must file US returns; foreign applicants often use phone or paper methods and may need an ITIN for responsible party or provide explanation per SS-4 instructions. (IRS + Stripe guidance) 5) How to add/update EIN in Stripe and Stripe verification requirements - Stripe dashboard: Business Details → re-enter or reverify tax ID; Stripe verifies business identity and tax ID with IRS records where applicable. Stripe support documents show you can re-enter tax ID information in the Business Details section of Dashboard. (Stripe support) - Required documents: Stripe may request IRS-issued documentation that shows the legal business name and EIN (IRS letter, CP 575, EIN assignment notice) and tax forms such as a completed W-9 for US entities or W-8BEN-E for foreign entities. Business verification documents (incorporation docs, registration, government ID, bank statement) may also be required. (Stripe docs & support) - Identity verification: Stripe collects and verifies information on beneficial owners/responsible parties (name, tax ID/SSN) per 2024+ verification updates. Owners’ tax IDs are required for verification in many US cases. (Stripe support / Required verification information) 6) Tax forms and matching rules (W-9 / W-8 series) and common mismatches - W-9: US persons/entities use Form W-9 to provide TIN (EIN or SSN) to requestors. W-9 instructions indicate name/SSN/EIN rules and when to enter owner name vs entity name. (IRS Form W-9) - W-8BEN-E: used by foreign entities to certify foreign status for US withholding — Stripe may request W-8 forms when the business or payee is foreign. (Stripe resources often reference W-8 forms for foreign entities.) - Name/EIN match: Stripe’s verification requires the legal business name and EIN on IRS documents to match exactly. Mismatches (spelling, punctuation, DBA vs legal name) are common reasons for rejections and delays. If IRS records differ from submitted docs, Stripe may ask for proof or updated IRS documentation. (Stripe support: “IRS documentation must match business name and tax ID number…”) 7) Compliance and regulatory considerations (federal + state) - Federal employer obligations: if you hire employees you must withhold and deposit payroll taxes, file employment tax returns, issue W-2s. The EIN is used for these filings. (IRS employer guidance / Publication references) - State registration: Most states require businesses to register for state tax accounts (sales/use tax permit, employer withholding tax) — many of those registration flows will ask for your federal EIN. Specific state agency pages (CA CDTFA seller’s permit; TX Comptroller sales tax permit; NY Department of Taxation & Finance; WA, FL state revenue pages) provide registration steps and often require an EIN to complete registration or open accounts. (State pages / SBA guidance) - Beneficial Ownership (BOI/FinCEN): Corporations, LLCs and other reporting entities may need to report beneficial owners to FinCEN when required; having formation docs and EIN is part of compliance. (IRS / FinCEN references seen on IRS EIN page) 8) Common pitfalls and troubleshooting - Applying multiple EINs unnecessarily: Only get a new EIN when required (ownership/structure change). Unnecessary duplicate EINs cause tax/accounting problems. (IRS / Stripe content) - Mismatch between IRS records and Stripe: spelling differences, use of DBA vs legal name, wrong EIN, or outdated Form SS-4 records cause verification failures. Solution: confirm IRS records (retrieve EIN notice, contact IRS if necessary) and re-submit exactly matching documents. (Stripe support / IRS) - Using SSN instead of EIN: For single-member LLCs and sole proprietors it’s common to use SSN, but Stripe verification or banks may prefer EIN; consider obtaining EIN to avoid exposing SSN. (Stripe / IRS) - Foreign-owned LLC: may need to apply by phone/mail and provide additional documentation; responsible party rules on SSN/ITIN/EIN complicate online applications. (IRS instructions) 9) Practical checklist and timeline for EIN + Stripe setup (recommended workflow) - Step 0 (prep, 0–1 day): Decide entity structure and form the entity with your state (if applicable). Gather owner/responsible party SSN/ITIN, legal business name, DBA, addresses, NAICS/business activity, formation documents. (IRS guidance) - Step 1 (apply for EIN, same day to 4 weeks): If principal business in US → apply online via IRS (minutes). If outside US or special case → phone/fax/mail (4 business days to 4 weeks). Save/print the EIN confirmation (CP 575 or faxed cover). (IRS) - Step 2 (Stripe account setup & add EIN, 0–7 days): In Stripe Dashboard > Business Details, enter the EIN exactly as on IRS docs. Upload IRS EIN assignment notice or Form SS-4 confirmation or other IRS-issued doc if requested. Complete owner identity verification (provide owner SSN/ITIN where required). (Stripe support/docs) - Step 3 (state registrations, 0–14 days): Register for sales tax permit and employer tax accounts in your state(s) — many require EIN. Obtain state accounts and keep records for Stripe verification and banking. (State agency pages) - Step 4 (tax forms with Stripe; ongoing): Provide W-9 to US payers (or provide W-8 series if foreign) and ensure Stripe’s tax reporting settings are correct. Monitor Stripe verification emails and respond quickly to documentation requests. (Stripe docs) 10) Practical recommendations and best practices - Always use the legal entity name that matches IRS records when submitting EIN to Stripe; if using a DBA, be prepared to show both DBA registration and the IRS-assigned name and EIN. (Stripe support) - Keep a secure copy of your EIN confirmation (IRS CP 575 notice or fax cover) and Form SS-

Those are accepted proofs if Stripe asks for IRS documentation. (IRS / Stripe docs) - If Stripe rejects verification

check exact name/EIN on IRS records, get a copy of IRS EIN notice, confirm responsible party TIN, then re-submit and/or contact Stripe support with the IRS notice attached. (Stripe support) - For foreign owners/startups using Stripe US accounts: confirm Stripe Atlas or Stripe country guidance, and use the IRS international EIN phone/fax options when necessary. (Stripe Atlas and Stripe guidance)