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Some people insist on the EIN number in order to discuss lending.

Resolved Question:

Some people insist on the EIN number in order to discuss lending. Why is this?

I am not a US resident, and have just formed an LLC to do some business asap. Currently, I do not have any employees, and may not for some time, as the business will be operated by a US company who will register all employees under their name. So, do I need the EIN number today?

To apply for an EIN, I need to apply first for an ITIN.

Submitted: 1 year ago.
Category: Finance
Expert:  CGCPA replied 1 year ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

 

First, I will give you an understanding of what an EIN and ITIN are:

 

An EIN is an identifying number used for all non human business ventures. It used for tax compliance and for the reporting of financial activity. Without this the LLC will not be able to conduct business in the US since those paying you are required to keep a record of this.

 

An ITIN is used to identify, again to report taxable financial activity, of non US citizens.

 

Since these two numbers are required by law you are required to obtain same prior to engaging in business in the US. Without them those who will be paying you will be required to withhold taxes at 30-35% from any amounts paid to you. Not a good choice.

Charles Greiner41015.6933114583

Expert:  CGCPA replied 1 year ago.

Here is some additional information, with links to forms from the Internal Revenue Service:

 

Employer ID Numbers (EINs)

 

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An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service. You must check with your state to make sure you need a state number or charter.

*WARNING - Be aware of suspected phishing scheme in email claiming to be from IRS' Office of Professional Responsibility.*

Apply for an EIN Online

Check out our Interview-style online EIN application. No need to file a Form SS-4! We ask you the questions and you give us the answers. The application includes embedded help topics and hyperlinked keywords and definitions so separate instructions aren't needed. After all validations are done you will get your EIN immediately upon completion. You can then download, save, and print your confirmation notice. It's fast, free, and user-friendly!

Change of Ownership or Structure
Generally, businesses need a new EIN when their ownership or structure has changed. Refer to "Do You Need a New EIN?" to determine if this applies to your business.

Verify Your EIN
If you want to verify your EIN, see the Lost or Misplaced Your EIN page for instructions.

Due to a high volume of requests for EINs, the IRS will begin limiting the number of EINs assigned per day to a responsible party. Effective April 11, 2011, a responsible party will be limited to five (5) EINs in one business day. This limit is in effect whether you apply online, by phone, fax or mail.

References/Related Topics

Individual Taxpayer Identification Number (ITIN)

Acceptance Agents' Alert (Posted July 1, 2010)

Effective July 1, 2010, all authorized representatives added to existing, approved acceptance agent agreements are required to take the mandatory Acceptance Agent training and submit the certification form along with the amended Form 13551.

New ITIN Acceptance Agent Program Changes

(Posted April 12, 2010)

Acceptance Agents Applications - Open Season

The Internal Revenue Service (IRS) will be accepting and processing Forms 13551, Application to Participate in the IRS Acceptance Agent Program, during open season May 1-August 31 of each year for new and renewing applicants. We will continue to accept amended applications throughout the year.

General ITIN Information

  • What is an ITIN?
  • What is an ITIN used for?
  • Who needs an ITIN?
  • How do I know if I need an ITIN?
  • How do I apply for an ITIN?
  • When should I apply for an ITIN?
  • Where can I get help with my ITIN application?
  • How and when can I expect to receive my ITIN?


REVISED APPLICATION STANDARDS FOR ITINs

  • What are the revised application standards for ITINs?
  • Why did IRS change from an ITIN card to an authorization letter?
  • Why did IRS revise the ITIN application process?
  • What documents are acceptable as proof of identity and foreign status?


FORMS AND PUBLICATIONS

Before submitting Form 13551 to apply to participate in the Acceptance Agent Program, access and complete the mandatory
Acceptance Agent training.


Additional ITIN Information

CGCPA, CPA
Category: Finance
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