What is an EIN (Employer Identification Number or Federal Taxpayer ID)
For businesses, it is like a Social Security Number (SSN) or the Federal Employer Identification Number (EIN)! It is a one-of-a-kind nine-digit number provided by the IRS to identify your company for tax functions. It is like the business ID number in the USA.
Why would an EIN matter for non-USA residents?
All foreign individuals who are here in the UNITED STATES and want to start a business need EIN. If you are incorporating, hiring staff, or looking to set up a business bank account - an EIN is often necessary. It serves as the first step in transacting in the U.S.
When is a Federal Employer Identification Number (EIN) Required?
Definitely if it involves start a business in the U.S., hiring employees, or even register an entity under which you would file taxes for your small business. Non-USA residents in need of a way to open a USA bank account, or get credit for their business will likewise have use require an EIN.
Applying for an EIN When Not a USA Resident
The application process to receive an EIN as a non-USA resident is less intimidating than it may appear. You can apply via email, mail, fax, or phone. A form known as an SS-4 must be filled, this will explained in the next part.
Steps to Fill Out Form SS-4
You have to file the Form SS-4 to get your EIN. Here are the steps:
Fill Up Form SS-4: You can get this online from the IRS
Enter Your Business Information: You want to fill in your business info like the shop name, Address, and category.
Detail the Reason for EIN Requirement: Indicate exactly why you request an EIN.
Mistakes you may commit during the application phase
Some of the common reasons that have become a pitfall for businesses while applying for EIN are:
Junk Data:Spend extra time making sure what you're entering is correct and accurate.
Wrong Form Used: Be There with the Right One — Remember to utilize the SS-4 form, not any other IRS document
Forgetting to mention a Reason: You had better define why you want the EIN well.
How Long Does It Take to Get an EIN?
Once you've submitted your application, the time it takes to receive your EIN can vary. If you apply by fax, you might get your EIN within four business days. Applying by mail could take up to four weeks. The quickest way to receive your EIN is by phone.
What Can You Do with an EIN?
An EIN opens up many doors for your business. You can hire employees, open a business bank account, and file taxes. It’s also necessary to apply for business licenses and permits.
How Long to Get an EIN?
According to the page, it can take 1–2 weeks after you apply for an EIN online until it is officially established; other methods have different timelines. If you apply by fax, it may take up to 4 business days to receive your EIN. An application by mail can take up to four weeks. The fastest method is by telephone, and you will receive your EIN number right away.
What Can You Do with an EIN?
That said, an EIN provides your business with a lot of benefits. You are able to employ employees, set up a business bank account, and do tax filings. It is also required to be able to apply for company licenses and permits.
How to Properly Utilize Your EIN
However, it only starts when you have an EIN. It is best to use it whenever you need your business identity established. Everything from opening bank accounts to applying for credit and filing your business taxes. It's your business ID, so be sure you keep it in an accessible place.
Do You Need an EIN to Be in Business?
While some small businesses may be able to get by without an EIN, it is not recommended. So, sans an EIN then you may land up in trouble doing business here. Challenges in opening a bank account or hiring employees. This streamlines things in most cases; having an EIN helps.
How to Keep Your EIN Secure
Your EIN is part of what identifies your business — keep it safe. Keep your EIN documents secure and do not share them unless necessary. It is akin to safeguarding the social security number of your business.
When You Have Lost Your EINIt happens to the best of us — losing your EIN will not bring down the world. Recovery EIN is available by calling the IRS directly. They will ask more about your business and for you to confirm who you are. If all is well, they will provide you with your EIN.
WHEN DO I HAVE TO RENEW MY EIN?
Your EIN is the only license or permit you will not have to renew periodically; it does not expire. It is attached to your business forever. There is no need to restore it, even if you change the name and address of your business.
