An Employer Identification Number (EIN), also referred to as Federal Tax Identification Number, is a distinct nine-digit number provided by the Internal Revenue Service (IRS) to businesses for taxation purposes in the United States. This number is used by the IRS to identify tax accounts of employers as well as other entities that are required to file business tax returns. Although EIN is primarily used in the US, businesses in India can also obtain an EIN number for their US operations.

As soon as one initiates his/her business, the EIN is required. According to the IRS guidelines, EIN is required in the following cases:

• • You have employees under you;
  • For operating a Corporation or a Partnership;
  • If you file Employment, Excise, Firearms, Tobacco and Alcohol tax returns;
  • You withhold taxes on income paid to a non-resident alien (other than wages);
  • You have a Keogh plan;

Or in case you are involved in any of the below mentioned organisation:

• • Trusts barring the Exempt Organization Business Income Tax Returns, trustee-owned revocable trusts, IRAs;
  • Estates;
  • Administrators for Plans;
  • Farmers’ cooperatives;
  • Real estate mortgage investment channels;
  • Non-profit organizations.

Organisations need an EIN to file their business tax return and to pay salary to their employees. Other than that, banks, brokerage houses, credit unions don’t allow corporations to have bank accounts without EIN.

Obtaining an EIN is a smooth process if you have a Social Security Number (SSN) / ITIN. But for non-citizens, it can be a headache if due diligence is not observed. Almost all people hire lawyers after they obtain an EIN number to report their employment tax. Still, they don’t know that they can hire a lawyer on a retainer ship to help them with all the legal requirements of the business, including EIN at a very optimum cost. I mean, if I have to eventually pay a lawyer, why not get maximum service for the same price?

This helps them in three ways:

1. Optimum cost for legal services as retainership is always more economical than solitary assignments;

2. The retained lawyers also understand your business better because they were the one who assisted in laying its international foundation thus they are able to deliver better and much more proficiency and accuracy in the work;

3. Zero chances of common mistakes in regulatory compliances, agreements and due diligence. All the complicated questions requiring legal expertise will be the responsibilities of your lawyer, giving you ample time to work on your product development and business strategies.

Following are some common queries we have assisted our client with:

• • What are the requisite permission and compliances required before applying for an EIN?
  • What is the difference between an EIN and Tax Identification Number? Can they be used interchangeably?
  • How to ascertain in which category your employee falls? What are the consequences of misclassification?
  • Who all can be responsible parties for EIN?
  • When one needs to file Form SS-4 and when not?
  • Do individual subcontractors require an EIN?
  • What is the correlation amongst organisational structure, ownership of the business and an EIN?
  • EIN doesn’t expire, but under what conditions can it be revoked?
  • Can EIN and TIN be used interchangeably? 

While this is possible, it is a lengthy procedure to obtain an EIN number and can cost you your billable time. We at USAIndiaCFO have a stellar record of securing an EIN for Indian entrepreneurs within three to four days, irrespective of SSN and ITIN.

SSN is for the US citizens and for authorized non-citizens residents (students on F1 visas, Green Card holders, etc). ITIN is for foreign-status residents including undocumented aliens, non-resident aliens, foreign companies, partnerships, and trusts require an ITIN.

SSN is needed to work, collect Social Security benefits and pensions, and are required in order to be eligible for other social services and every American has one as it serves National ID number for the purpose of various financial and medical services. ITIN is required to file for taxes by the non-residents.

US citizens with SSNs don’t need to pay any third party to obtain an EIN, you can simply apply online on the IRS’ website using this link.

Obtaining an EIN number for your business in India can be challenging for non-citizens who may not have the necessary requisites such as a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). However, we at [company name] have over 5+ years of experience in this field and have successfully assisted international businesses in expanding their operations to the United States. Our expertise in obtaining EIN numbers for businesses has been acknowledged by top clients such as Paperboat Apps, VSV Wins Group, Numiv Research, and thousands of other business ventures. With a track record of never disappointing a single client, we are confident in our ability to help you obtain an EIN number for your business.

Looking for professional assistance for your business? Contact us today! Our team is just a phone call away at +91 9828280505 (also available on WhatsApp) or you can drop us an email at hello@usaindiacfo.com with your business requirements. We guarantee to respond within 2 hours and help you with your needs. Don’t hesitate to reach out!

We help you to obtain your EIN, along with providing a range of other services to take full accountability as the virtual CFO of your business.

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