The EIN Application Process: Why ANZ Companies Face Unexpected Delays
When an ANZ business connects with us after setting up a US entity, there’s usually a moment of panic in the conversation: “We need to open a US bank account, but the bank keeps asking for an “EIN letter”. What is that, and how long does it take to get it?”
The honest answer: longer than anyone expects and almost never for reasons the business could have anticipated.
An Employer Identification Number (EIN) is the US equivalent of an ABN or NZBN, a federal tax ID issued by the Internal Revenue Service (IRS) that your US entity needs before it can do anything (e.g.,file tax returns, register for state taxes, hire employees).
Critically this includes opening a US bank account or applying for a business credit card. US banks won’t process an application without the physical EIN confirmation letter in hand. The EIN number alone isn’t enough. Until that letter arrives, your business is financially frozen in the US, unable to transact, unable to pay vendors, unable to operate in any meaningful sense.
Here’s what's actually causing the delays, and why they catch ANZ businesses off guard every time.
How the EIN Application Actually Works
There are two ways to apply for an EIN, and which one you can use depends on who you are.
Online: If you’re a US incorporated or formed entity and your responsible party — the individual who owns or controls the entity (typically an officer or director) — has a US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), you can apply online through the IRS website and receive your EIN immediately.
Fax or mail: If you’re an international applicant, don’t have an SSN or ITIN, or are otherwise not qualified to file online, you must submit Form SS-4 by fax or paper mail. Fax typically takes four to five weeks. Mail can take six to eight weeks or longer.
Delay #1: The Responsible Party Requirement, and the SSN Problem
The IRS requires every EIN application to name a “responsible party” — an individual who owns or controls the entity. Not a company, not a trust. A real, named person that is appointed as an officer and/or director.
For the online application pathway, that individual must have a SSN or ITIN. Most ANZ directors don’t have either. An SSN is issued to US citizens/residents or those with the authorization to work in the US. An ITIN requires its own separate IRS application process which takes time (typically 3-4 months) and certain requirements must be met to apply. So the online pathway, which would otherwise issue an EIN instantly, is simply often unavailable to the majority of ANZ applicants.
Delay #2: IRS Processing Backlogs and the Realities of Fax and Mail
Once ANZ businesses understand that online filing isn’t an option, they turn to Form SS-4 submitted by fax or paper mail. This is the correct pathway but it comes with wait times that can genuinely disrupt business timelines.
Fax submissions typically take four to five weeks to process. Mail can take six to eight weeks or longer. During periods of high IRS demand these timelines extend further with no clear visibility on where your application sits in the queue.
For businesses that need to move quickly to meet payroll, satisfy a bank’s onboarding requirements, or hit a contract deadline, these timelines can be genuinely disruptive.
Delay #3: No US Address, and Why the Letter Actually Matters
Once an EIN is issued, the IRS sends a physical confirmation letter, CP 575, to the address on the application. This is where things get operationally painful in a way that’s hard to appreciate until you’re in it.
Here’s the reality: you generally cannot open a US bank account or apply for a business credit card without this letter. The EIN number alone isn’t enough. Banks want to see the CP 575 as proof of federal registration before they’ll proceed, which means until that letter arrives, your business is financially frozen in the US, regardless of how smoothly everything else has gone.
For ANZ businesses without a reliable US address, this creates a genuine logistical problem. An overseas mailing address is technically permitted but adds international transit time and, occasionally, lost mail.
It’s a problem that seems administrative until you’re sitting on a signed US contract with no way to get paid because your bank account application is on hold, waiting on a piece of paper.
What This Means in Practice
The EIN process looks simple on the surface. The foreign entity nuances are what make it complicated. At a minimum, ANZ companies should come prepared with:
Clarity on whether a responsible party has an SSN or ITIN and if not, a realistic plan for navigating the fax or paper mail route and the associated wait times.
A reliable US address arranged before applying so the CP 575 has somewhere to land and doesn’t create a secondary bottleneck.
Realistic timelines built into the broader setup plan to allow for time for this submission and make no assumptions that banking can proceed before the CP 575 letter is in hand.
The businesses that run into the most trouble are the ones who treat EIN procurement as a box to tick after the entity is formed, rather than a process to plan for in parallel. By the time the delays become visible, there are usually other deadlines already waiting on the other side.
The EIN Process: Step by Step
Here’s how the pieces connect in sequence, so there are no surprises along the way:
1. Incorporate your US entity. This is the starting point. The EIN application cannot be submitted until the entity exists.
2. Apply for your EIN immediately via fax or mail. Submit Form SS-4 as soon as the entity is formed. The processing window starts from the date the IRS receives your application.
3. Use the waiting period productively. While the application is being processed, arrange your US registered agent address, prepare your bank account documentation, and confirm which bank you intend to use and what they require for onboarding.
4. EIN issued but wait for the letter. Once the IRS processes your application, your EIN will be confirmed. Record it, but your bank might still require the physical CP 575 letter.
5. CP 575 letter arrives. With the confirmation letter in hand, you can now proceed with US bank account opening and business credit card applications.
How TaxStudio Can Help
At TaxStudio, we work closely with ANZ businesses navigating the US tax system. EIN applications including the foreign entity nuances that aren’t obvious from reading the IRS website are one of the first things we help clients get right.
If you’re setting up a US entity and want the EIN process handled correctly from the start, get in touch with our team here. We’ll make sure the EIN process doesn’t become the bottleneck that holds everything else up.
