Foreign Company EIN (Tax ID)

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If you are a foreign company or business and you want to start a business in United States, you will need an Employer Identification Number (EIN).

Having an Employer Identification Number (EIN) will allow you to start your business in United States, open a U.S. bank account, hire employees, and apply for permits and licenses

The Internal Revenue Service (IRS) has made it difficult for foreign companies to apply for an EIN.

To apply for an EIN, the company typically needs to provide the U.S. Social Security Number (SSN) of a “Principal Officer.” The Principal Officer should control, manage, or direct the applicant’s entity and the distribution of its funds and assets. The Principal Officer must be an actual person and he or she can live anywhere in the world.

However, if this is a problem for most foreign companies as the Principal Officer of the company most likely does NOT have a U.S. Social Security to apply for an EIN. 

In such situations, you will need a Third Party Designee to represent your foreign company to apply and receive your EIN. 

 

How to Get an EIN (Tax ID) for a Foreign Company

If you are a foreign company without a U.S. Social Security Number (SSN), the following process should be followed:

  1. Have a business lawyer act as a Third Party Designee for your foreign company
  2. The business lawyer will prepare Form SS-4 Application for Employer Identification Number on behalf of the company
  3. The business lawyer will receive the company’s EIN and forward it to the applicant at that time

To guarantee that your EIN application is correctly completed and complies with IRS’s requirements, it is strongly recommended to have a business lawyer act as your Third Party Designee to apply for your EIN on your behalf. 

 

► If you are a foreign company and your Principal Officer does NOT have a U.S. Social Security Number and you need an Employer Identification Number (EIN) to start your business or open a U.S. bank account, contact Sam Mollaei, Esq., Business Lawyer, via email at sam@mollaeilaw.com or by phone (818) 925-0002.