We outline the physics opportunities provided by the Electron Ion Collider (EIC). These include the study of the parton structure of the nucleon and nuclei, the onset of gluon saturation, the production of jets and heavy flavor, hadron spectroscopy and tests of fundamental symmetries. We review the present status and future challenges in EIC theory that have to be addressed in order to realize this ambitious and impactful physics program, including how to engage a diverse and inclusive workforce. In order to address these many-fold challenges, we propose a coordinated effort involving theory groups with differing expertise is needed. We discuss the scientific goals and scope of such an EIC Theory Alliance.