Employer Identification Number (EIN): What Australian Businesses Need to Know in 2025

If you’re running an Australian business and eyeing global expansion, or simply managing cross-border financial relationships, you’ve probably come across the term ‘Employer Identification Number’ (EIN). While the EIN is a US tax concept, it’s increasingly relevant for Australian entrepreneurs and companies engaging with American partners, platforms, or markets in 2025.

What is an Employer Identification Number (EIN)?

An EIN is a unique nine-digit number issued by the US Internal Revenue Service (IRS) to identify businesses for tax purposes. Think of it as the American equivalent of an ABN (Australian Business Number), but with specific utility for entities operating in, or interacting with, the United States. Whether you’re registering a subsidiary, selling via Amazon US, or setting up a US bank account, an EIN is often a non-negotiable requirement.

• Who needs an EIN? Australian companies forming a US entity, hiring US employees, opening US bank accounts, or selling on US marketplaces.

• Why it matters: Without an EIN, many US financial institutions and platforms will not allow account creation or payouts.

Why Are EINs Relevant for Australians in 2025?

The digital economy and remote work have only deepened the connection between Australian businesses and the US market. In 2025, several trends and policy updates are making EINs even more important:

• Stricter US compliance: New IRS rules have tightened identity verification for non-US businesses. Australian companies must now provide additional documentation, such as certified company extracts and foreign tax identification numbers, when applying for an EIN.

• Global payment platforms: Major platforms like Stripe, PayPal, and Amazon US have updated their onboarding to require valid EINs for overseas sellers and service providers. Delays in obtaining an EIN can now significantly slow down market entry.

• US-Australia tax treaty updates: Changes in 2024 and 2025 have clarified the need for Australian businesses to correctly report US-source income, making EINs essential for tax compliance and avoiding double taxation.

For example, an Australian tech startup launching a SaaS product in the US will need an EIN to open a US Stripe account, receive payments, and file necessary tax forms like the W-8BEN-E.

How to Apply for an EIN as an Australian Business

The EIN application process for non-US entities is more involved than for American companies, but it’s manageable with the right preparation:

• Determine eligibility: Ensure your business has a legitimate need for an EIN under IRS rules (e.g., opening a US bank account, hiring US staff, selling goods in the US).

• Prepare documentation: You’ll need your Australian company registration details, a US mailing address (if available), and the responsible party’s personal identification (often a director or owner).

• Submit IRS Form SS-4: This can be done by fax or mail (online submission is generally not available for foreign entities). In 2025, the IRS is piloting a secure online portal for select international applicants—watch for updates as this may simplify the process.

• Wait for processing: As of 2025, typical turnaround is 4–6 weeks, but can be longer if additional verification is required. You’ll receive your EIN by mail or fax, depending on your application method.

Pro tip: Consider working with a registered agent or international tax advisor to streamline the process, especially if you’re setting up a US LLC or corporation.

Common Scenarios and 2025 Policy Changes

Here’s where EINs most commonly come into play for Australians in 2025:

• Selling on US e-commerce platforms: Marketplaces like Amazon, Etsy, and eBay now require EINs for all foreign sellers to comply with US tax reporting rules.

• Opening US financial accounts: US banks and payment processors require EINs from all non-resident business customers due to updated Know Your Customer (KYC) regulations.

• Hiring US-based staff or contractors: Paying US personnel triggers IRS reporting and withholding obligations, all tied to your EIN.

Notably, in 2025, the IRS has started cross-referencing EIN applications with international tax authorities, including the ATO, to combat fraud and ensure tax transparency. This means accurate, up-to-date business information is more important than ever.

Conclusion: Get EIN-Ready for Global Business

In 2025, the Employer Identification Number is not just a US tax formality—it’s a practical key to unlocking cross-border opportunities for Australian businesses. Whether you’re a startup planning US expansion, an e-commerce seller, or a consultant working with American clients, understanding and obtaining your EIN is essential. With new compliance requirements and more platforms demanding EINs, the sooner you prepare, the faster you’ll be able to seize opportunities in the world’s largest economy.