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If you’re a non-US resident looking to start a business in the United States, you’ll need an Employer Identification Number (EIN). An EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for tax purposes. As a non-US resident, it’s important to know how to apply for an EIN correctly to avoid any issues with the IRS.

In this comprehensive guide, we’ll walk you through the process of how to apply for an EIN as a non-US resident without our assistance. We’ll cover the necessary documents you’ll need, the different ways to apply, and answer some frequently asked questions about EINs.

How to Apply for an EIN as a Non-US Resident: Step-by-Step Guide

Step 1: Determine Your Eligibility for an EIN

Before you begin the application process, you’ll need to make sure you’re eligible to apply for an EIN as a non-US resident. You can apply for an EIN if:

• You have a valid Taxpayer Identification Number (TIN) or Social Security Number (SSN) issued by the US government.
• You’re a sole proprietor or a single-member limited liability company (LLC) without any employees.
• You’re the “Responsible Party” for a US company formed in the US. The “responsible party” is the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity. The person identified as the responsible party should have a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the person, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (that is, a natural person), not an entity. 
• You’re an owner of a foreign company that’s doing business in the US.

If you don’t meet any of these requirements, you may need to obtain a US-based business partner or hire an attorney to apply for an EIN on your behalf.

Step 2: Gather the Necessary Documents for your EIN application

To apply for an EIN as a non-US resident, you’ll need to provide the following documents:

• A completed Form SS-4 (Application for Employer Identification Number) You will need to read the instructions for Form SS-4 as well.
• A copy of your valid TIN or SSN
• A copy of your passport or another government-issued identification
• A letter from the IRS stating that you need an EIN to comply with IRS regulations

Step 3: Choose Your Application Method

There are three ways to apply for an EIN as a non-US resident:

1. Online Application: You can apply for an EIN online through the IRS website. This is the fastest and most convenient way to apply. You’ll need to complete the online application and receive your EIN immediately. An SSN is required to use the online application.
2. Fax Application: You can also apply for an EIN by fax. Download Form SS-4 from the IRS website and fill it out completely. Once you’ve filled out the form, fax it to the IRS. If you do not have an SSN or ITIN, you will need to read the Form SS-4 instructions carefully for the correct fax number for your location.
3. Mail Application: If you prefer to apply by mail, download Form SS-4 from the IRS website and fill it out completely. Once you’ve filled out the form, mail it to the address provided on the form, being sure to note the correct address depending on where you live.

Step 4: Submit Your EIN Application

Once you’ve chosen your application method and gathered all the necessary documents, you’re ready to submit your application. If you’re applying online, you’ll receive your EIN immediately. (Pro tip: once you get to the final window, with your EIN information, be sure to save this page! Eventually you will get a copy in the mail, but you will never be able to return to this window if you forgot to write down the number). If you’re applying by fax or mail, you’ll need to wait for the IRS to process your application.

FAQs:

How long does it take to get an EIN as a non-US resident?

If you apply online, you’ll receive your EIN immediately, assuming the IRS doesn’t have any problems with the company information. If you apply by fax or mail, it can take weeks or months to receive your EIN, depending on the backlog of applications, staffing shortages, illnesses at the IRS processing center or government shutdowns.

Can I apply for an EIN if I don’t have a US-based business partner or attorney?

If you don’t have a US-based business partner or attorney, you can still apply for an EIN as a non-US resident. You’ll need to read the Form SS-4 instructions carefully for the phone, fax and address to address the application to.

Do I need to have a US-based bank account to apply for an EIN?

No, you don’t need to have a US-based bank account to apply for an EIN as a non-US resident. However, if you’re doing business in the US, it’s recommended that you open a US-based bank account to simplify your financial transactions. ANY tax-related forms and documentation must be denominated in US dollars. Also, if you or your business entity is considered a “US person” for tax purposes, and you have one or more bank or financial accounts outside the US whose aggregate amounts are over US$10,000, then you will be required to file an FBAR report for you and/or your entity.

Common Mistakes Non-Residents Make When Applying for an EIN

• Incorrectly Filling Out Form SS-4: As mentioned, lines 7b, 8a, and 8b are crucial. Ensure they are filled out correctly to avoid delays or rejections.
  Not Having a U.S. Address: While a U.S. address is not mandatory, not having one can complicate the process. Consider using a U.S. representative or agent’s address if you don’t have a U.S. address of your own.
• Not Being Available for Follow-Up: The IRS might have additional questions. Ensure you’re available at the contact number you provide, especially if you apply by phone.
• Sending Incomplete Documentation: If you’re mailing your application, ensure all required documents are included. Missing documents can lead to delays.
• Not Checking the Status: If you haven’t received your EIN within the expected timeframe, contact the IRS to check the status. It’s possible that there were issues with your application that you weren’t made aware of.
• Not Having an ITIN When Required: Some non-residents mistakenly believe they don’t need an ITIN when applying for an EIN. While it’s true that an ITIN isn’t strictly necessary for the EIN application, having one can simplify the process and is essential for certain tax-related activities in the U.S. Not having an ITIN when it’s beneficial or required can lead to complications in tax filings and other business operations.

Conclusion:

Applying for an EIN as a non-US resident can be a bit confusing, but it’s an critical step if you want to start a business in the United States. By following the steps outlined in this guide, you can apply for an EIN with ease and avoid any issues with the IRS. Remember to gather all the necessary documents, choose your application method, and submit your application correctly. Good luck!