Foreign companies often make critical mistakes when applying for an EIN in the U.S. — from address issues to form errors. Discover the 7 most common pitfalls and how SpeedEIN helps you avoid them.
Top 7 EIN Application Mistakes Made by Foreign Companies
Applying for an EIN (Employer Identification Number) in the United States can seem straightforward — but for foreign entities, it’s filled with traps. A single mistake can result in your EIN request being ignored, rejected, or worse, tied to incorrect information that’s impossible to fix. This article lists the 7 most common EIN mistakes foreign companies make, and how SpeedEIN ensures a smooth and accurate application process.
🔍 Quick Summary Table
| No. | Mistake Type | Description | Risk / Consequence |
|---|---|---|---|
| 1 | Wrong Form Submitted | Submitting W-7 or W-9 instead of SS-4 | Rejected or ignored by IRS |
| 2 | Business Name Mistake | Name doesn’t match company registration docs | EIN linked to wrong entity; can’t open account |
| 3 | Invalid Address Used | Used virtual mailbox or incorrect format | CP575 never arrives; IRS doesn’t resend it |
| 4 | Didn’t Mark as Foreign | Failed to check “Foreign entity” box on Line 10 | IRS assumes you’re a U.S. entity; rejected |
| 5 | Incorrect Signature | No signature or signed by unauthorized person | IRS rejects the form |
| 6 | Bad English/Translation | Used unclear or machine-translated words | IRS cannot process ambiguous entries |
| 7 | No Copies or Records Saved | Didn’t save SS-4 form or EIN number | Can’t appeal or recover your EIN |
❗ Why These Mistakes Are So Dangerous
- The IRS doesn’t notify you about errors. If your application has issues, you won’t get an email or call — it’s simply ignored or returned by mail.
- CP575 is only mailed once. This official EIN confirmation letter cannot be emailed or downloaded. A single address mistake means you may never receive it.
- Once linked, EIN info can’t be changed. If you enter the wrong name or mark the wrong box, your EIN is tied to incorrect data — and that can’t be fixed later.
✅ How SpeedEIN Helps You Avoid All These Traps
| Benefit | What SpeedEIN Does | What It Prevents |
|---|---|---|
| Expert Review | All data is double-checked by professionals | Typos, misclassifications |
| Smart Templates | Pre-filled templates that match IRS formats | Format or layout errors |
| Address Verification | Requires real, functional addresses | CP575 delivery failure |
| Clear IRS Policy Guides | Clients fully understand how CP575 works | Misunderstanding about delivery method |
| Multilingual Support | Serve clients in their native language | Language-related mistakes |
✅ Self-Check: Are You Already at Risk?
- Is your business name 100% identical to your registration certificate?
- Are you using a real, physical address that can receive mail from the IRS?
- Do you know that CP575 is NOT sent by email?
- Did the correct person sign the SS-4?
- Do you have a saved copy of your application and EIN?
If you’re unsure about any of these, it’s time to stop guessing and let SpeedEIN handle it for you.
⚠️ Final Words: One Shot, No Second Chances
Foreign companies only get one chance to apply for EIN correctly. The IRS doesn’t follow up, CP575 is not reissued, and incorrect EIN info can cause permanent problems in tax reporting, banking, and platform verification. Why risk it? Let SpeedEIN handle your EIN application professionally and securely.