Starting a business in the United States can be a daunting task, especially for non-U.S. citizens. One of the most important things that you’ll need to do when setting up your business is to obtain an Employer Identification Number (EIN). An EIN is a unique nine-digit number that the Internal Revenue Service (IRS) assigns to businesses for tax purposes. While the process of getting an EIN may seem complicated and overwhelming, it’s actually quite straightforward if you have the right information and guidance. In this article, we’ll break down the steps you need to follow to obtain an EIN as a non-U.S. citizen, including the various forms you’ll need to fill out, the different methods of application, and some tips for making the process as smooth and stress-free as possible. So, whether you’re a foreign entrepreneur looking to start a new business in the U.S. or an international company expanding your operations to America, keep reading to learn everything you need to know about getting an EIN for your business.
Who needs an EIN?
If you’re starting a business in the United States, you’ll need an EIN. This applies to all types of businesses, including sole proprietorships, partnerships, limited liability companies (LLCs), corporations, and non-profit organizations. An EIN is necessary for tax purposes, and it’s also required if you want to open a business bank account or hire employees in the United States.
Can non-U.S. citizens apply for an EIN?
Yes, non-U.S. citizens can apply for an EIN. In fact, there’s no citizenship requirement for obtaining an EIN. However, you will need to have a valid reason for obtaining an EIN, such as starting a business or opening a U.S. bank account. Additionally, you’ll need to provide certain documentation to prove your identity and business status.
Documents required to apply for an EIN as a non-U.S. citizen
When you apply for an EIN as a non-U.S. citizen, you’ll need to provide the following documentation:
1. Form SS-4
Form SS-4 is the application form for an EIN. You can download it from the IRS website, fill it out electronically, and submit it online. Alternatively, you can print out the form, fill it out by hand, and mail it to the IRS.
2. Proof of identity
You’ll need to provide proof of your identity, such as a passport or driver’s license. If you’re applying on behalf of a business, you’ll also need to provide proof of the business’s identity, such as a business license or articles of incorporation.
3. Business address
You’ll need to provide a U.S. mailing address for your business. This can be a physical address, a P.O. box, or the address of a third-party designee who will receive mail on your behalf.
4. Responsible party information
You’ll need to provide information about the person responsible for the business, such as their name, social security number, and address. This person will be the primary contact for the IRS and will be responsible for filing tax returns and paying taxes.
Steps to apply for an EIN as a non-U.S. citizen
Now that you know what documentation you’ll need to provide, let’s go through the steps for applying for an EIN as a non-U.S. citizen:
1. Determine your eligibility
Make sure that you have a valid reason for obtaining an EIN, such as starting a business or opening a U.S. bank account. You’ll also need to have a valid taxpayer identification number (TIN), which can be your social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN).
2. Obtain the necessary documentation
Collect all of the documentation you’ll need to provide, including Form SS-4, proof of identity, business address, and responsible party information.
3. Fill out Form SS-4
Fill out Form SS-4 electronically or by hand, making sure to provide accurate and complete information. You’ll need to provide information about your business, such as the type of entity, the date of formation, and the principal activity.
4. Submit the application
Submit your application online or by mail. If you submit your application online, you’ll receive your EIN immediately. If you submit your application by mail, it can take up to four weeks to receive your EIN.
5. Keep your EIN on file
Once you receive your EIN, make sure to keep it on file in a safe and secure location. You’ll need it for tax purposes and to open a U.S. bank account.
Common mistakes to avoid when applying for an EIN
When applying for an EIN as a non-U.S. citizen, there are some common mistakes that you should avoid:
1. Providing inaccurate information
Make sure to provide accurate and complete information on your application. Providing inaccurate information can delay the processing of your application or result in your application being rejected.
2. Applying for an EIN without a valid reason
Make sure that you have a valid reason for obtaining an EIN, such as starting a business or opening a U.S. bank account. Applying for an EIN without a valid reason can result in your application being rejected.
3. Not providing the necessary documentation
Make sure to provide all of the necessary documentation, such as proof of identity and business address. Not providing the necessary documentation can delay the processing of your application or result in your application being rejected.
Frequently asked questions about EIN for non-U.S. citizens
Q1. Can I apply for an EIN if I don’t have a social security number?
Yes, you can apply for an EIN without a social security number. You can use an individual taxpayer identification number (ITIN) instead.
Q2. Can I apply for an EIN if I don’t have a U.S. mailing address?
Yes, you can use the address of a third-party designee who will receive mail on your behalf.
Q3. How long does it take to get an EIN?
If you apply online, you’ll receive your EIN immediately. If you apply by mail, it can take up to four weeks to receive your EIN.
Q4. Can I apply for an EIN for a non-profit organization?
Yes, you can apply for an EIN for a non-profit organization.
Alternative ways to obtain an EIN
If you don’t want to apply for an EIN yourself, you can hire a third-party service provider to do it for you. These providers can help you with the application process and provide additional services, such as registered agent services and business formation services.
Conclusion
Obtaining an EIN as a non-U.S. citizen may seem like a daunting task, but it’s actually quite straightforward if you have the right information and guidance. Make sure to have a valid reason for obtaining an EIN, collect all of the necessary documentation, and fill out the application accurately and completely. If you follow these steps and avoid common mistakes, you’ll have your EIN in no time. Good luck with your business!