The EIN (Employer Identification Number) is a mandatory identifier for operating a U.S. business. This comprehensive guide provides non-U.S. residents with a detailed walkthrough of the EIN application process, covering eligibility, required documents, three application methods (authorized representative, mail, phone), step-by-step instructions, and strategies to avoid common mistakes—helping you apply quickly and compliantly.
After successfully registering your U.S. company, the next critical step is applying for an EIN (Employer Identification Number). For non-resident entrepreneurs who have never been to the U.S., this process can seem complex and confusing. You might be wondering: What if I don’t have a Social Security Number (SSN)? Do I need to travel to the U.S.? How long will it take?
Don’t worry! This guide breaks down the entire EIN application process into clear, actionable steps, offering practical advice and tips to help you avoid pitfalls and obtain this essential “business passport” efficiently and smoothly.
1. EIN Application Eligibility: Who Can Apply?
The good news is that the IRS has very lenient eligibility requirements for obtaining an EIN.
- Core Requirement: Any business entity formed or operating in the U.S. can apply for an EIN, provided there is a designated “Responsible Party.”
- Non-Residents Are Eligible: You do not need to be a U.S. citizen, permanent resident, or possess an SSN. As long as you are the company’s owner, manager, or an individual with authority over its financial and accounting decisions, you qualify as the “Responsible Party” and can apply.
- Key Requirement: The responsible party must have valid personal identification (such as a passport) and be able to provide accurate company information.
Summary: No matter where you are in the world, if you legally own or control a U.S. company, you are entitled to apply for an EIN for that business.
2. Pre-Application Preparation: Required Information and Documents
Before starting your application, ensure you have the following information and documents ready:
- Company Information:
- Legal company name (must match formation documents exactly)
- “Doing Business As” (DBA) name (if applicable)
- State of formation (where the company is registered)
- Date of formation
- Principal business address (can be your registered agent’s address)
- Primary business activity (e.g., consulting, e-commerce, real estate investment)
- Responsible Party Information:
- Full legal name (must match passport)
- Nationality
- Personal address (can be in your home country)
- Valid passport details (for identity verification)
- Business Structure and Operations:
- Type of entity (LLC, Corporation, Partnership, etc.)
- Expected number of employees (even if zero)
- Date of first wage payment (if applicable)
- Description of main business activities
- Optional but Recommended:
- Copy of Articles of Organization/Incorporation
- Summary of Bylaws or Operating Agreement
3. Three Ways to Apply for an EIN: Detailed Comparison
The IRS offers multiple application methods. Non-residents should choose the one that best suits their situation.
Method 1: Apply Through an Authorized Representative (Highly Recommended for Non-Residents)
This is the most common and efficient method for non-U.S. residents.
- Process:
- Choose a Representative: Appoint a trusted individual in the U.S. (e.g., accountant, lawyer) or a professional service provider (like SpeedEIN) as your “Authorized Representative.”
- Provide Information: Share all prepared information and documents with your representative.
- Representative Submits: The representative completes IRS Form SS-4 using your details and submits it via fax or mail to the IRS.
- Receive EIN: After processing (typically within 1–2 weeks), the IRS sends the EIN to your representative, who then forwards it to you.
- Advantages:
- No SSN Required: The representative can submit the application without you needing an SSN.
- Fast and Accurate: Professional services understand IRS requirements, minimizing errors and rejections.
- Time-Saving: Avoids the long delays and communication challenges of international mail.
- Disadvantage:
- Involves a service fee (a worthwhile investment for speed and reliability).
Method 2: Apply by Mail
You can complete Form SS-4 yourself and mail it to the IRS.
- Process:
- Download Form: Get Form SS-4 from the IRS website.
- Complete Form: Fill out all fields accurately in English. Write “Foreign” in the SSN/ITIN field (Item 7b).
- Mail: Send the completed form to the IRS processing center (note: mailing address differs from fax address and may vary by application type).
- Advantage:
- Free: No third-party fees.
- Disadvantages:
- Very Slow: International mail plus IRS processing can take 4–8 weeks or longer.
- High Error Risk: Mistakes or incorrect addresses can lead to rejection or lost applications.
- Poor Communication: The IRS may struggle to contact you if issues arise.
Method 3: Apply by Phone (Limited Applicability)
The IRS allows certain entities to apply by phone, but with strict limitations for non-residents.
- Eligibility: Generally limited to individuals with an SSN or ITIN, or certain government entities. Most non-resident aliens are not eligible.
- Process: Call the IRS international EIN application line (e.g., 267-907-4952), where an IRS agent will assist you.
- Advantage: Receive the EIN immediately during the call.
- Disadvantages: Rarely accessible to non-residents, long wait times, and potential language barriers.
Strong Recommendation: For non-U.S. residents, Method 1 (via an authorized representative) is the best option, ensuring a smooth, fast, and compliant application.
4. Key SS-4 Form Tips and Common Mistakes
Accurate completion of Form SS-4 is crucial for success. Pay special attention to:
- Items 7a and 7b (SSN/ITIN): As a non-resident, do not leave blank. Enter the responsible party’s name in 7a and clearly write “Foreign” in 7b. This is the IRS’s standard for non-resident applications.
- Item 10 (State of Formation): Accurately enter the state where your company is registered (e.g., Delaware, Wyoming, Florida).
- Item 11 (Date of Formation): Use the exact date from your formation document.
- Item 16 (Principal Business Activity): Provide a clear and specific description—avoid vague terms like “miscellaneous.”
- Responsible Party Details: Ensure the name and address exactly match the passport.
Common Mistakes:
- Leaving Item 7b blank or entering an invalid SSN/ITIN.
- Mismatched company name (vs. formation documents).
- Incorrect formation date or state.
- Vague business description (e.g., “Other”).
5. After Submission: Receiving Your EIN and Next Steps
Upon approval, you’ll receive the CP 575 Notice (or EIN Assignment Notice) via your representative or by mail, which contains your EIN.
Critical Next Steps:
- Verify Information: Double-check all details on the CP 575 for accuracy.
- Secure Storage: Safely store your EIN and CP 575—they are vital legal documents.
- Open a Bank Account: Contact U.S. banks using your EIN, formation documents, and CP 575 to open a business account.
- Tax Planning: Consult a U.S. accountant to understand federal, state, and withholding tax obligations.
- Maintain Compliance: Ensure ongoing adherence to federal and state business regulations.
6. Conclusion: Choose a Professional Service for Efficiency
Obtaining an EIN is the foundational step in your U.S. business journey. While the process may seem straightforward, a single error can cause weeks of delay, impacting your banking and operations.
For non-residents, using a professional EIN service (like SpeedEIN) not only saves valuable time but also ensures 100% accuracy, allowing you to focus on growing your business instead of navigating administrative hurdles.
Take action today—secure your EIN and launch your successful U.S. business venture!