Obtaining an EIN as a Non-U.S. Citizen: A Comprehensive Guide
The United States has gained a reputation for being a hub for entrepreneurship and innovation. The record-high U.S. business profits in 2021 are a testament to the country's favorable business climate. Even for non-U.S. citizens, starting a business in America can be an attractive proposition. One crucial step in this process is acquiring an Employer Identification Number (EIN), even if you do not have a Social Security Number (SSN).
Why Do You Need an EIN?
An EIN, also known as a Tax ID, is a nine-digit number issued by the Internal Revenue Service (IRS) for businesses operating in the United States. The EIN serves multiple purposes:
- Filing tax returns for your business
- Opening a business bank account
- Handling employee payroll and accounting
- Building credit for your business and validating its legal status
Is an SSN Mandatory for an EIN?
Contrary to popular belief, an SSN is not a prerequisite for obtaining an EIN. While an SSN is an identification number for individuals, an EIN is designed for businesses. The IRS has distinct procedures for issuing these two types of identification numbers.
The Role of an ITIN in the EIN Process
Although an SSN is not required, having an Individual Taxpayer Identification Number (ITIN) can simplify the process. An ITIN serves as an alternative tax identification number for non-U.S. citizens who aren't eligible for an SSN. To apply for an ITIN, one must submit IRS Form W-7. Once you have an ITIN, you can easily apply for an EIN online if your business is based in the U.S.
Applying for an EIN without an SSN or ITIN
If you neither have an SSN nor an ITIN, you can still apply for an EIN if your business is based in the U.S. However, you cannot apply online. The alternative method requires you to complete IRS Form SS-4, titled "Application for Employer Identification Number." The form can be submitted via phone, fax, or mail, but you cannot use multiple methods for submission.
- Phone: International applicants can call 267-941-1099 (a non-toll-free number) between 6:00 a.m. and 11:00 p.m. Eastern Time, Monday to Friday.
- Fax: You can send the completed form to 304-707-9471 and should expect to receive your EIN within four business days.
- Mail: If you prefer to mail the application, send it to:
Internal Revenue Service
Attn: EIN International Operation
Cincinnati, OH 45999
Note: that the mail application may take several weeks to process.
Using a Third-Party Designee
Navigating the IRS's procedures can be challenging, especially for those outside the United States. The IRS allows you to designate a third party, such as an attorney, to interact with them on your behalf. This option can be beneficial for expediting the application process and avoiding mistakes.
Additional Services to Facilitate EIN Acquisition
Companies like Startco offer EIN acquisition services for non-U.S. citizens. By opting for their Gold or Platinum packages, you can not only form your business but also receive your EIN as part of the package.
Acquiring an EIN as a non-U.S. citizen can be complex but it's a vital step for starting a business in the U.S. Service providers like Startco aim to make this process easier, helping you realize your American entrepreneurial dream.
Check out our services: