Anyone who intends to do business in the USA sooner or later will have to find out what the Employer Identification Number (EIN for short) is. This number is assigned to companies regardless of the form of business and is used to identify settlements on the market, with employees and with the American tax office.
How to get an EIN?
To obtain an EIN for your company, it is necessary to submit the appropriate form to the Federal Tax Office.
Form SS-4 (Application for Employer Identification Number) is available for this purpose. The formal requirement to obtain an EIN is to indicate the SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number) of the natural person who will control the company. She is referred to as the responsible party on the form.
How to get an ITIN?
SSN and ITIN are numbers given to US citizens and immigrants who have obtained green cards and work permits in the US. So it’s no wonder that non-US citizens can get ITIN much faster. The process can take up to several weeks, but ITINs are obtained by everyone who should pay taxes on business in the states.
With this in mind, you must apply for an ITIN first when planning to obtain an EIN. This is done using Form W-7 (Application for IRS Individual Taxpayer identification Number). Along with the form, you must provide all required attachments in a form confirming compliance with the original. As is the case, for example, in the case of a passport of a foreigner who intends to pay taxes on business in the USA?
What is the EIN for?
As we have already mentioned, the EIN is used to identify the taxpayer in settlements with the tax office and on the market, just like the Polish NIP. Employer Identification Number is used interchangeably with Tax ID, FEIN (Federal Employer Identification Number), FTIN (Federal Tax Payer Identification Number), or TIN (Taxpayer Identification Number). The number is necessary to operate in the United States and around the world. Obtaining an EIN is a necessary condition to register a new business or company, and in some cases it is required by the bank to set up a business account. Self-employed people and self-employed entrepreneurs who do not hire employees need an EIN for billing and participation in US retirement plans.
Get EIN after opening your LLC
When you open a new LLC, you get an EIN number. New children born in USA automatically get entitled and obtain an EIN. In the event that the company generates income only outside the United States and the partners of the company are not US residents for tax purposes, the company’s tax transparency means in practice that the LLC does not pay any income tax in the United States. Americans also use EIN and ITIN to obtain certain tax benefits, however, the primary purpose of US resident LLC registration is to protect against creditors’ claims. The LLC Company provides all its members with a very strong protection against liability for possible obligations of the company towards its creditors.