EIN

What is an EIN and How to Obtain It as a Non-Resident Owning an LLC in the U.S.

An Employer Identification Number (EIN) is a unique number assigned by the Internal Revenue Service (IRS) for business identification purposes. An EIN is necessary for various activities such as paying taxes, opening bank accounts, and hiring employees. In this article, we will explain in detail what an EIN is and how a non-resident owning an LLC in the U.S. can obtain it.

What is an EIN?

An EIN is a nine-digit number used to identify a business for tax purposes. It is similar to a Social Security Number (SSN) for individuals but is intended for business entities such as corporations, partnerships, and Limited Liability Companies (LLCs).

Why Do You Need an EIN?

An EIN is required for several important tasks:

• Paying Federal Taxes: All companies registered in the U.S. must have an EIN to file tax returns.
• Opening a Bank Account: Most banks require an EIN to open an account in the company's name.
• Hiring Employees: If your LLC plans to hire employees, an EIN is mandatory for registering with tax authorities and filing payroll reports.
• Registering with Government Agencies: In some states, an EIN is required to obtain business licenses and permits.

How to Obtain an EIN as a Non-Resident Owning an LLC in the U.S.

Obtaining an EIN as a non-resident may seem challenging, but it is a manageable task with the right approach. Here is a step-by-step guide to obtaining an EIN for a non-resident owning an LLC in the U.S.

Step 1: Prepare the Necessary Documents

Before applying for an EIN, you need to prepare the following documents:

• Articles of Organization for your LLC.
• Operating Agreement for your LLC, if available.
• Passport or other identification document of the company owner.

Step 2: Complete Form SS-4

Form SS-4 is the official application form for an EIN. It is available on the IRS website and must be completed in English. In the form, provide the following information:

• Full name of the LLC.
• U.S. address of the LLC.
• Date of formation of the LLC.
• Type of business activity.
• Name and identification details of the owner or responsible party.

Step 3: Submit the EIN Application

There are several ways to submit the EIN application:

• Online: Non-residents can apply online through the IRS website, but this option is available only during business hours.
• Fax: The completed SS-4 form can be faxed to the IRS. The response usually arrives within 4-5 business days.
• Mail: The SS-4 form can be mailed to the IRS address. Processing mailed applications takes longer — up to 4 weeks.
• Phone: Non-residents can call the IRS EIN International Office at +1 (267) 941-1099 (not a toll-free number) and apply over the phone.

Step 4: Receive the EIN

After successfully submitting your application, you will receive your EIN. If the application was submitted online or by phone, the number can be obtained immediately. For fax or mail applications, the EIN will be sent to the address provided on the form.

Tips and Recommendations

• Using a Registered Agent: Non-residents may use the services of a registered agent in the U.S. to simplify the application process.
• Accurate Form Completion: Carefully complete the SS-4 form to avoid errors and delays in processing your application.
• Timely Application: Start the process of obtaining an EIN in advance, as it is necessary for many aspects of doing business in the U.S.

Conclusion

An EIN is a crucial element for conducting business in the U.S., especially for non-residents owning an LLC. By following the described steps and recommendations, you can successfully obtain an EIN and start effectively managing your business. Although the process may seem complex, with proper preparation and attention to detail, it becomes quite straightforward.