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Non-resident foreigners often assume applying for an EIN after forming a U.S. LLC is easy—but a single SS-4 error or missed IRS letter can lead to rejection or legal trouble. Learn the 5 most common mistakes and how to avoid them with SpeedEIN’s expert service.
5 Legal Risks Non-Residents Must Avoid When Applying for an EIN After Forming a U.S. LLC
Author: SpeedEIN Team｜Last Updated: June 2025
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🧭 Forming an LLC Isn’t Enough — Why You Still Need an EIN
According to IRS Publication 1635 and Publication 583,
the Employer Identification Number (EIN) is the tax ID number required to:
- Open a U.S. business bank account
- Register for Stripe, Amazon, or PayPal
- File IRS-required reports (e.g. 5472, 1099)
- Hire employees or independent contractors
- Operate any legal U.S. entity
⚠️ The 5 Most Common EIN Mistakes Foreigners Make
| ❗ Risk Type | 💡 Description | 🔥 Consequence |
|---|---|---|
| ❌ Incorrect SS-4 Form | Wrong or missing info in Lines 7a, 7b, 9a, or 10 | EIN rejected without notice |
| 📬 CP 575 Not Received | IRS approval letter only sent by physical mail | No U.S. address = no EIN proof |
| 📠 Fax-Only Submission | Foreigners can’t apply online—only via fax | Errors = no reply, no correction |
| 🛑 False Responsible Party | Using fake or borrowed names (e.g., friends) | Risk of IRS rejection or blacklisting |
| 🧾 Ignoring Tax Reporting | BOIR, 5472, FATCA often ignored | Fines, revocation, future EIN issues |
📄 EIN Process for Non-U.S. Residents (Summary Table)
| Step | Action | Notes |
|---|---|---|
| 1️⃣ | Form your LLC | LLC certificate required |
| 2️⃣ | Fill out Form SS-4 | Must be accurate and in English |
| 3️⃣ | Submit by fax to IRS | Email not accepted; no confirmation |
| 4️⃣ | Wait for IRS reply | Usually 4–7 business days |
| 5️⃣ | Receive CP 575 by mail | U.S. mailing address required |
🏠 SpeedEIN provides a U.S. address for CP 575 delivery.
📝 SS-4 Form: Common Error Zones
| Line # | Field Name | ❌ Common Mistake | ✅ Correct Practice |
|---|---|---|---|
| 7a/7b | Responsible Party | Friend’s name or pseudonym | Real legal name of owner |
| 9a | Type of Entity | Marked S-Corp or Trust | Must mark “LLC – Disregarded Entity” |
| 10 | Reason for Applying | “Hired employees” | Should be “Started a new business” |
🤯 Why Applying on Your Own is So Risky
- IRS does not offer online EIN for foreigners
- They will not notify you of SS-4 errors
- Fax only — no email, no phone confirmation
- You must receive a physical CP 575 in the U.S.
- You may accidentally violate BOIR or FATCA rules
💥 Real-Life Application Fails
❌ “I used an online template twice. Both were rejected. IRS gave no reason. I wasted a month.”
❌ “Used a friend’s address for CP 575. Now the IRS is asking for BOIR and may cancel my EIN.”
✅ Why Choose SpeedEIN
| Feature | DIY | Generic Agents | ✅ SpeedEIN |
|---|---|---|---|
| Non-U.S. Friendly | ❌ | Partial | ✅ 100% nonresident support |
| U.S. Address for CP 575 | ❌ | ? | ✅ Yes, included |
| Legal Compliance | ❌ | ❌ | ✅ Reviewed by IRS experts |
| Refund Guarantee | ❌ | ❓ | ✅ Full refund if not approved |
| Language Support | English only | Limited | ✅ 15 languages incl. 中文・日本語・한국어 |
🛡️ EIN = Legal Identity. Do It Right.
SpeedEIN partners with former IRS agents and U.S. legal experts to
review every field on your SS-4 and guarantee full compliance,
so your EIN is issued safely, fast, and legally.
🚀 Ready to Apply? We’ll Handle the Hard Part.
No fax machines. No legal confusion. Just 3 minutes to fill out our form — and we do the rest.