Confused about who to list as Responsible Party on Form SS-4? Learn why using an agent or service provider is a major IRS compliance risk. Avoid EIN revocation with this complete guide for non-US residents.
When applying for an Employer Identification Number (EIN) as a non-US resident, one question causes more confusion—and compliance risk—than any other:
“Who should I list as the Responsible Party on Form SS-4?”
Many EIN service providers, especially those targeting foreign entrepreneurs, will suggest or even require that you list their name or their agent’s name as the Responsible Party. This may seem convenient, but it’s a serious violation of IRS rules and could lead to your EIN being revoked, your business flagged for audit, or future tax complications.
In this in-depth guide, we’ll explain:
- ✅ What the Responsible Party really means (per IRS Publication 1635)
- 🚫 Why listing a third party is illegal and risky
- 📋 Who qualifies—even if you don’t have an SSN or ITIN
- ⚠️ Real cases of EIN revocation due to fake Responsible Parties
- 📬 How the Responsible Party affects your CP575 letter and IRS communications
- ✅ How SpeedEIN helps you comply while getting your EIN fast and safely
This isn’t just a paperwork issue—it’s a foundational compliance decision for your US business.
🔍 What Is the Responsible Party? (Official IRS Definition)
The term “Responsible Party” is defined by the Internal Revenue Service (IRS) in Publication 1635 (Understanding Your EIN):
“The responsible party is the individual who has significant control, ownership, or influence over the entity. This is typically a founder, owner, general partner, grantor, or trustor.”
In simpler terms: the Responsible Party is the real person behind the business—the one who makes key decisions, receives profits, and ultimately controls the entity.
This person must be listed in Section 5 of Form SS-4, including their:
- Full legal name
- Home address (can be foreign)
- SSN, ITIN, or ATIN (if available)
- If no SSN/ITIN: a written explanation stating why (e.g., “Non-US resident without SSN or ITIN”)
📌 Key Fact: The Responsible Party does not need to be a US citizen or resident. You can legally apply as a foreign national—you just need to provide accurate information.
🚫 The #1 EIN Mistake: Using a Third Party as Responsible Party
Many EIN service providers—especially low-cost or automated platforms—will:
- List their agent as the Responsible Party
- Use a fictitious name or company name
- Claim it’s “required” or “easier”
This is false and dangerous.
According to the IRS, only an individual with actual control over the business can be the Responsible Party. You cannot delegate this role to a third party.
⚖️ IRS Rule: “The responsible party must be a natural person (individual), not an entity. Listing a corporation, LLC, or registered agent as the responsible party will result in rejection or revocation of the EIN.” — IRS Internal Guidelines, SS-4 Processing
❌ Why This Is a Compliance Disaster
| Risk | Description |
|---|---|
| EIN Revocation | The IRS can cancel your EIN if they discover the Responsible Party is fake or unauthorized. |
| Audit Trigger | Mismatched ownership data raises red flags in IRS systems. |
| Bank Account Issues | Banks like Mercury, Chase, or Novo require the CP575 to match the owner’s ID. If the Responsible Party is wrong, your account may be frozen. |
| Stripe/PayPal Rejection | Payment processors verify EIN ownership. A mismatched Responsible Party = account suspension. |
| Future Tax Filing Problems | When you file Form 1120, 1065, or 1040-NR, the IRS will cross-check the Responsible Party. Inconsistencies cause delays or penalties. |
✅ Who Can Be the Responsible Party? (Eligibility Rules)
You do not need an SSN or ITIN to be the Responsible Party. The IRS accepts foreign nationals as long as they are the true controller of the business.
✔️ Acceptable Responsible Parties:
- Founder or CEO of a C-Corp
- Managing Member of an LLC
- General Partner in a Partnership
- Trustee of a Trust-owned entity
- Single owner of a disregarded entity (e.g., single-member LLC)
📝 Required Information:
- Name: Full legal name (as on passport)
- Address: Can be foreign (e.g., “London, UK”)
- Tax ID: If no SSN/ITIN, write “Foreign national without SSN or ITIN”
- Signature: Must be signed by the Responsible Party (not an agent)
💡 Pro Tip: Even if you’re using a US registered agent, they cannot be the Responsible Party. Their role is legal compliance, not control.
📬 How the Responsible Party Affects Your CP575 Letter
The CP575 is the official IRS document that confirms your EIN. It includes:
- Business name
- EIN number
- Name of the Responsible Party
- Mailing address
If the Responsible Party on your CP575 is not you, but a third party, then:
- ❌ The IRS considers the EIN to be under their control
- ❌ You may not be able to prove ownership to banks or platforms
- ❌ Future IRS communications will go to them, not you
🛑 Warning: Some providers claim they’ll “transfer” the EIN to you later. This is not possible. The Responsible Party can only be changed by filing Form 8822-B with a valid reason—and the IRS may still reject it.
🛡️ Real-World Case: EIN Revoked Due to Fake Responsible Party
Case: A German entrepreneur used a popular EIN service that listed their US agent as the Responsible Party. The EIN was issued, and the client opened a US bank account.
Problem: Two years later, during a routine IRS audit, the discrepancy was found. The IRS:
- Revoked the EIN
- Required re-filing of all past tax returns under a new EIN
- Imposed late-filing penalties
The business was forced to close its US bank account and restructure.
Lesson: Shortcuts today create long-term liabilities.
✅ How SpeedEIN Protects Your Compliance
At SpeedEIN, we believe in full transparency and IRS compliance. That’s why we:
- ✅ Require you to be the Responsible Party—no exceptions
- ✅ Help you draft the correct explanation if you don’t have an SSN/ITIN
- ✅ Never use our address or name on your application
- ✅ Guide you to receive the CP575 at your US mailing address
- ✅ Provide email support throughout the process
We don’t cut corners. We help you build a compliant foundation for your US business.
📄 Free Download: “Checklist: 10 Must-Know Rules for EIN Responsible Party”
⏱️ Processing Time & What to Expect
Once you submit Form SS-4 correctly:
| Step | Timeframe | What Happens |
|---|---|---|
| IRS Receives Fax | 1–3 days | Application logged into system |
| Review & Approval | 7–10 business days | EIN assigned if no issues |
| CP575 Mailed | 10–20 business days | Sent to your US mailing address |
| SpeedEIN Total | 10 days (EIN) 20 days (CP575) |
We track and notify you |
📞 Don’t Risk Your EIN on a Bad Decision
The Responsible Party is not a formality—it’s a legal and tax cornerstone of your US business. Get it right from the start.
👉 Apply with SpeedEIN – 100% IRS Compliant
SpeedEIN: Trusted by international founders. No SSN needed. Your EIN, your control.