Simplifying EIN for Non-US Residents: How to Get an EIN as a Non-US Resident

Navigating the intricacies of starting a business in the United States may seem daunting, especially when it comes to securing an Employer Identification Number (EIN). 

It is assigned by the Internal Revenue Service (IRS) and is similar to a Social Security number but meant for business entities instead of individuals.

This vital nine-digit number applies to both non-resident individuals and foreign companies looking to establish a presence in the US market. 

It acts as your key to opening doors — whether you’re establishing a financial presence, hiring employees, or setting up bank accounts stateside. 

Without it, you may face challenges with tax compliance, banking transactions, and legal requirements necessary for running your business smoothly. 

That’s why doola has simplified the process of obtaining an EIN and ensures that you have one before starting your operations in the US.

In this blog, we’ll break down the often-complicated process of obtaining an EIN for non-residents into simple steps and practical tips. 

Say goodbye to confusion and hello to clarity as we help you take one giant leap closer to realizing your American business dream!

EIN for Non-US Residents: How Do EINs Work in the US?

First and foremost, an EIN is required for any business entity that wants to operate and conduct financial activities within the US jurisdiction. 

This includes businesses such as corporations, partnerships, sole proprietorships, LLCs, non-profit organizations, and trusts. 

It is also necessary for foreign companies or individuals who have employees or representatives working in the US to obtain an EIN as a foreign entity.

The EIN serves multiple purposes and is used by both federal and state agencies for various legal requirements. 

For instance, the IRS uses it to track business tax obligations such as income tax filings and payroll taxes. It also helps businesses open a bank account under their name, apply for loans or credit cards, and establish credit history in the US.

An EIN may also be required when hiring employees for financial purposes. You need it to report wages paid through Form W-2 during tax season.

Moreover, a partnership or corporation that plans to file bankruptcy must have an active EIN before filing with the bankruptcy court.

Can Non-residents Get an EIN Without a US Address?

Many non-US residents may wonder if they are eligible to obtain an EIN without having a physical address in the United States. 

The answer is yes. You can obtain one as a non-US resident even without a US address as long as you meet all other necessary criteria.

There are two main ways non-residents can get an EIN without a US address:

By Using a Third-Party Designee

A third-party designee is someone who will act on your behalf during the application process and has agreed to receive correspondence from the IRS on your behalf.

To apply for an EIN using this method, the third-party designee must complete Form SS-4 and include their information in Section 3. 

They will also need to provide their personal information, including their name, phone number, and mailing address.

Once they receive your EIN from the IRS, they can forward it to you.

By Applying Through Mail or Fax

Another option for non-residents without a US address is to submit Form SS-4 directly to the IRS by mail or fax. 

In this case, you will need to provide your mailing address outside the US and clearly indicate in Section 8a of Form SS-4 that you are not located within US territory.

It’s important to note that if you are applying through fax, you must include an international fax number to ensure that the IRS can reach you. 

You can also designate someone else to receive the EIN on your behalf by filling out Section 9 of Form SS-4 and including their information.

Steps to Apply for an EIN as a Non-resident

Applying for an EIN as a non-resident may seem like a daunting task, but it is a fairly straightforward process. 

Step 1: Gather Required Information

Before beginning your application, make sure you have all the necessary information, such as your business entity’s name, type, and third-party designee’s details. 

This includes your name and address as well as your Social Security Number or Individual Taxpayer Identification Number (ITIN). 

You will also need to provide the legal name and address of your company or organization if it is already registered.

Step 2: Choose Your Application Method

There are three ways to apply for an EIN: online via the IRS website, by mail, fax, or over the phone through the IRS’s international call center. 

Each application method involves completing Form SS-4, the application for Employer Identification Number. 

When filling out Form SS-4, international applicants must indicate their entity’s foreign status and follow the instructions for foreign entities.

The easiest and quickest method is the online application; however, this option may not be available in certain situations, such as when applying on behalf of someone else.

Step 3: Fill Out the Application Form 

If you choose to apply online, you will be directed to fill out Form SS-4 online. This form requires detailed information about your business and the reason for applying.

You must also provide the primary nature of your business, including the products sold, services provided, and number of employees and their types.

Step 4: Submit Your Application 

Once you have completed filling out the application form, you can submit it to the IRS using your chosen method.

If you have chosen to apply online, your EIN will be assigned immediately upon validation of your information. 

If you have submitted your application by mail or fax, it may take up to four weeks for your EIN to be processed and sent back to you.

What You Need to Apply for an EIN From Outside the US

If you are a non-US resident looking to obtain an EIN for your business, you will need to gather specific requirements and documents before submitting your application. 

In this section, we will outline the key components that are necessary when applying for an EIN as a non-US resident.

📑 Information About Your Business

The application form will require information about your business, such as its legal name, trade name (if applicable), postal address, location of operations, and type of business entity. 

You may also need to provide information on any foreign partners or shareholders if they hold more than 25% ownership in the company.

📑 Documents Proving Foreign Status

If you are a non-US resident applying for an EIN, you will also need to provide documentation proving your foreign status. 

This includes copies of your government-issued identification, such as a passport or national identity card.

📑 Power of Attorney Authorization (Optional)

If you cannot physically sign the application form due to geographical constraints, then you must complete Form 2848 to appoint a representative to act on your behalf. 

This form will authorize an individual or service to fill out the application form (Form SS-4) and obtain an EIN on your behalf.

How Much Does It Cost to Get an EIN for Non-US Residents?

The short answer is that obtaining an EIN is entirely free.

However, some services offer assistance with the application process for a fee. 

You can use doola formation services to apply for an EIN to ensure you won’t have to waste time navigating complex IRS forms and procedures.

Our experts will handle everything, from filling out your application form to applying with the IRS, to ensure you receive your confirmed EIN swiftly.

This service is included in all of our business formation packages, starting at $297 per year, and can get you set up quickly and effortlessly.

With our step-by-step guide and our helpful tips from the experts, non-US residents can easily navigate the application process without incurring any additional costs.

Important Tax Obligations After You Obtain an EIN

Obtaining an EIN as a non-US resident is just the first step in your business journey in the US. 

After successfully obtaining your EIN, it is important to understand and fulfill your tax obligations as a business entity operating in the US.

💵 Income Tax Filings

Businesses must file annual income tax returns even if your business did not generate any income during that year. 

The due date for filing these returns is usually April 15th of each year unless extended by the IRS.

The specific form that you must use depends on their business structure (e.g., Form 1120 for corporations, Form 1065 for partnerships, and Form 1040 for sole proprietors).

💵 Employment Taxes

When hiring employees within the US, you must withhold various employment-related taxes such as social security and Medicare contributions from their employees’ wages. 

Additionally, employers must also pay a matching portion of these taxes on behalf of their employees. This information must be accurately reported and paid to the IRS regularly.

💵 Excise Taxes

If your business manufactures or sells certain products (such as fuel, tires, or tobacco), uses various kinds of equipment, facilities, or products, or receives payment for certain services, you may be responsible for excise taxes.

💵 Estimated Taxes

If your business expects to owe more than $1,000 in taxes for the current year, you are required to pay estimated taxes on a quarterly basis throughout the year. 

These payments are due on April 15th, June 15th, September 15th, and January 15th of each year.

Failure to meet these deadlines can result in penalties and interest accruing over time.

This is especially relevant for entities such as S-corporations and partnerships, where income is passed through to the owners.

💵 State and Local Taxes

Apart from federal taxes, businesses with an EIN may also be responsible for paying state and local taxes depending on their location and type of business activity. 

Each state has its own set of taxation rules and requirements, which can include income, sales, property, and employment taxes.

💵 Sales Tax

If your business sells goods or services subject to sales tax within the US, you must register for a sales tax permit in each relevant state.

You must collect appropriate sales tax from customers at checkout, or you can face fines or legal action being taken against your business.

💵 File Informational Returns

EIN holders are required to file various informational returns, such as Form 1099 for independent contractors and Form W-2 for employees each year. 

These forms report the income earned by individuals from your business, and failure to file them can result in penalties.

How to Update or Terminate Your EIN

As with any legal document, keeping your information accurate and up-to-date is crucial for business operations and compliance.

So, once you have successfully obtained your EIN as a non-US resident, it is crucial to know how to update or terminate it if necessary. 

Updating Your EIN

If your business information, such as your address, name, or responsible party, changes, you will need to update your EIN. 

To do this, fill out Form SS-4, “Application for Employer Identification Number,” which can be found on the IRS website. 

Make sure to accurately fill out all the required fields and provide an explanation for why you are updating the information.

You can also update your EIN information by calling the IRS Business & Specialty Tax Line at 1-800-829-4933. 

The representative will ask for identifying information to verify that you are authorized to make changes to the account.

Terminating Your EIN

If you are closing down your business or changing its legal structure (e.g., from sole proprietorship to corporation), you will need to terminate your existing EIN. 

This is important because if you don’t officially terminate it with the IRS, they will consider it active even if not in use and may continue sending correspondence regarding taxes.

However, before terminating an EIN, ensure that all tax obligations associated with that number are properly addressed.

To terminate your EIN, fill out Form 966, “Corporate Dissolution or Liquidation,” if ending a corporation entity. 

For other types of businesses, such as partnerships or sole proprietorships, send a letter to the IRS with your business information, EIN, and the date you want the EIN to be terminated. 

How to Operate a US Business as a Foreign Entity

Setting up a legal entity, such as a Limited Liability Company (LLC) or Corporation, is usually the first step in establishing a presence in the US market. 

LLCs offer flexible management structures and protect personal assets from business liabilities, while corporations provide taxation benefits and allow for raising funds through stock sales. 

Get started with doola’s formation services or if you’re not sure, book a free consult with our experienced compliance experts to determine which type of entity best suits your goals and needs.

Once your business entity is formed, we will help you obtain an EIN and the necessary permits based on your industry or location. 

This often includes state-level registrations, licenses, or certifications that may vary depending on your specific business activities. 

So, you can easily open a US business bank account to receive payments from clients, pay suppliers, and manage expenses effectively. 

Obtaining an EIN and staying compliant with tax and employment laws will go a long way in ensuring your success as a non-US resident business owner in the United States.

Simplify Your EIN Application With doola

The complicated forms, unclear instructions, and long waiting periods can make the whole experience overwhelming. 

However, with doola, you can simplify your EIN application process and get your EIN in just a few simple steps.

By using doola’s services to apply for an EIN instead of applying directly through the IRS website or mail-in applications via fax/mail/phone calls — which can take weeks or even months — you save valuable time and effort.

Our support team of experienced professionals are knowledgeable about US tax laws and can assist with any questions or concerns you may have during the application process.

With doola, you can simplify the entire process and get your EIN in just a few simple steps. 

Book a free consultation today to know more!