EIN – Employer Identification Number
What is an Employer Identification Number (EIN)?
An employer identification number (EIN) is a nine-digit number issued by the IRS to identify a business entity.
EIN can be used as a federal tax ID to identify your USA-based business LLC/LLP/INC legally.
What is an alternative option for Employer Identification Number (EIN)?
If you are a Self Employed Sole trader [i.e. without LLC or INC ownership], resident in the USA, and already have an SSN, you can use your Social Security Number. If you are not a resident of the USA, if you are a foreign person then the only option is to obtain an ITIN [Individual tax identification number.
For more details on the step by step ITIN application work process by acceptance agents please check this blog.
EINs are used by business owners for these purposes:
- Opening a business bank account:
- Forming an LLC and hiring employees
- If you decide to change your organization type [Entity Classification Elections]
- If you plan to establish business credit.
- Establishing pension, profit sharing, and retirement plans
- Filing employment, excise, alcohol, tobacco, or firearm taxes.
Can I apply for an ITIN for an LLC without an EIN?
No, To apply for the ITIN as an LLC or LLP or Inc Member then you need a valid LLC with EIN registered first before you can proceed with an ITIN application, Having an EIN for the US Corporation is mandatory to apply for ITIN.
Some agents in the USA who assist with US company formation have been under the wrong opinion the applicant would need an ITIN to apply for EIN which is not the case (watch this video for more details). If you need to apply for EIN for newly formed US based LLC our team can assist.
Our team specializes in international expatriate U.S. personal tax return service. If you need assistance with ITIN Renewal/US 1040 filing for refund claim/FATCA Compliance work/FBAR FINCEN114 Filing, ITIN/ Form W7 Application/E.I.N./Form W8BENE or Certified Acceptance Agents [C.A.A.] services/1040NR U.S. tax filing for refund claim of excess 1042S / 8288A/ 8805/ W2/ 1099. We are happy to assist our clients in a timely, efficient, and cost-effective way.
