Article Highlights:
- Foreign Entities Conducting Business in the U.S.
- U.S. Address
- Applying for an EIN
- By Telephone
- EIN Online
- By Fax or Mail
- Updating EIN Information
An Employer Identification Number (EIN) is required for international companies doing business in the United States. In addition to being necessary for payroll and tax reporting, U.S. banks will need it in order to open accounts. A foreign entity must either currently operate a business or be preparing to operate one in the United States in order to be eligible for an EIN. The Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, must also be filed with an EIN.
Additionally, according to a tax treaty clause, foreign organizations that are not persons (such as foreign businesses) must have an EIN in order to claim an exemption from withholding (claimed on Form W-8BEN).
While a physical location in the United States is not required for foreign organizations to obtain an EIN, doing so facilitates the process of opening a bank account in the country.
Although international organizations are not necessary to have a physical site in the United States in order to receive an EIN, doing so makes the process of opening a bank account in the country easier.
By Telephone
Only candidates from outside the country are eligible for this option. The applicant may receive an EIN by calling 267-941-1099 (not a toll-free number), Monday through Friday, from 6:00 a.m. to 11:00 p.m. (Eastern time), if they do not have a primary office, agency, or place of business in the United States or its territories.
That being said, the caller has to have the right to get the EIN and respond to inquiries about Form SS-4. Just fill out the Third-Party Designee section to give permission for the designated person to get the entity's EIN and respond to inquiries regarding Form SS-4 completion. When the EIN is assigned and given to the designee, the designee's power ends.
Note: Fill out Form SS-4 in order to ensure that you have all the information you'll need when you call the IRS. An IRS agent will create the entity's account and issue an EIN using the data on Form SS-4. When calling the IRS, the caller should note the IRS assistant's number in the upper right corner of the form, sign it, and date it. The applicant should save this copy for their records.
By EIN Online
The application can be submitted online . It would be wise for the individual submitting the application to manually complete the SS-4 in advance to ensure they have all the necessary information. The online application must be completed in a single visit; the information cannot be saved and completed later. In addition, a session will timeout after 15 minutes of inactivity, and the applicant will need to start over. The EIN is immediately available.
To utilize the online application, the primary officer, general partner, or owner of the company must have a valid taxpayer identification number (SSN, EIN, or ITIN).
It should be noted that the online application cannot be utilized to get an EIN if there is NO legal domicile, major place of business, principal office, or agency in the United States or its territories.
By Mail or FAX
It's crucial to notify the IRS of any changes to the organization after obtaining the EIN. This specifically refers to modifications to the company's mailing address, physical location, or accountable party's identification. Within sixty days, changes to the responsible party must be submitted.
Form 8822-B, which can be found on the IRS website, can be used to notify the IRS of these changes. For information on where to file Form 8822-B, consult the instructions. Each state lists a distinct filing address.
Please contact our office if you need help applying for an EIN or if you have any queries.
