How to get an EIN for an LLC as a non-resident? The complete guide

Introduction

Setting up a Limited Liability Company (LLC) in the United States can be a fruitful endeavour for non-residents. After establishing your LLC, one of the crucial steps is obtaining an Employer Identification Number (EIN). In this guide, we will walk you through the process of obtaining an EIN for your LLC as a non-resident.

What is an EIN?

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses operating in the United States. It serves as a tax identification number and is used for various purposes, such as filing tax returns, opening bank accounts, and hiring employees.

Why do you need an EIN for your LLC?

As a non-resident running an LLC in the United States, you need an EIN to:

• Open a business bank account
• File tax or information returns
• Comply with IRS regulations
• Hire employees

Applying for an EIN as a non-resident

Filling out Form SS-4

Non-resident foreigners without a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) must fill out Form SS-4 to apply for an EIN. The form can be found here.

Faxing the form

Once you've completed Form SS-4, you need to send it to the IRS either by mail or fax. However, faxing is recommended as it is faster and more cost-effective. You can fax the form to the IRS at 855-641-6935.

Best practices to avoid delays

To ensure a smooth EIN application process, consider the following tips:

• Attach your company's Articles of Organization and Certificate of Formation to Form SS-4
• Include a cover letter
• Provide your fax number to receive your EIN

What to expect after submitting Form SS-4

The IRS does not send a confirmation message to acknowledge receipt of your application. You should receive your EIN within four business days, but it may take up to two months in some cases.

Receiving your EIN

There are two ways you might receive your EIN:

Faxed SS-4 with EIN

The IRS may send you a fax containing your SS-4 form with your assigned EIN and other relevant IRS information.

CP 575 Letter

The CP 575 Letter is a mailed document sent to the address provided on your SS-4 form. It confirms your EIN and includes additional IRS details. The letter typically arrives at your registered agent's address within two weeks after faxing the form.

What if you haven't received your CP 575 Letter within 2 weeks?

If you haven't received the CP 575 Letter within two weeks, you or your appointed Third Party Designee can contact the IRS to request it or ask for a 147c Letter.

What is a 147c Letter?

A 147c Letter is an EIN Confirmation Letter issued by the IRS upon your request. It confirms your EIN and can be sent via fax or mail.

Calling the IRS to request a CP 575 or EIN Confirmation Letter

To request a CP 575 or 147c Letter, call +1 800-829-4933, then select option 1, followed by option 3 or 4, depending on your specific situation. You may need to call multiple times due to high call volume. When connected, the average wait time is around two hours.

Once your call is answered, the IRS representative will verify your identity by asking for information from your faxed SS-4 form, such as:

• Name of the company
• EIN number (if you already have one and are requesting a Confirmation Letter)
• Number of LLC members
• Date the company was formed
• Name of the responsible party
• Mailing address
• Phone number

What if the information on your EIN CP 575 Letter or 147c Letter is incorrect?

If there is incorrect information on your CP 575 or 147c Letter, you will need to address the issue depending on whether the mistake was made by you or the IRS.

Correcting information due to your mistake

If the mistake was made on your end when submitting the SS-4 form, you must send a letter to the IRS explaining the error and providing the correct information. Enclose the ripped stub from the CP 575 Letter and send it via courier (FedEx, DHL, USPS, etc.).

Correcting information due to the IRS's mistake

If the mistake was made by the IRS, call them to explain the error and request a correction. They may fix the mistake and fax you a corrected 147c Letter. If they insist on receiving a mailed request, you can try calling again, as another representative may be more willing to help.

Conclusion

Obtaining an EIN for your LLC as a non-resident is a critical step in establishing your business in the United States. By following this guide and adhering to best practices, you can ensure a smooth EIN application process and avoid unnecessary delays.

FAQs

1. What is the difference between an EIN, ITIN, and SSN?
   • An EIN is a tax identification number for businesses, while an ITIN is a tax identification number for individuals who do not have an SSN. An SSN is a unique identification number issued to U.S. citizens and eligible residents for various purposes, including taxation.
2. Can I apply for an EIN online as a non-resident?
   • No, non-residents without an SSN or ITIN must apply for an EIN using Form SS-4, which must be sent to the IRS via fax or mail.
3. How long does it take to receive an EIN after submitting Form SS-4?
   • The EIN should be assigned within four business days, but it may take up to two months in some cases. If you submit your form via fax, you can typically expect to receive your EIN within one to two weeks.
     4. What if I haven't received my EIN after two months?
        • If you haven't received your EIN after two months, contact the IRS to inquire about the status of your application. They may provide further guidance or help you expedite the process.
     5. Can I use my EIN to open a bank account for my LLC?
        • Yes, you can use your EIN to open a bank account for your LLC. In fact, you will need an EIN to open a business bank account, file taxes, and hire employees.