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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10097
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I'm a foreign citizen (Romania), and have co-founded a

Customer Question

Hi, I'm a foreign citizen (Romania), and have co-founded a company here in the US with a US resident. I co-own it, have been issued shares, and I am the CEO and Secretary, but not an employee. I need the tax number to submit my Election under section 83(b) form. Should I apply for a EIN or for a ITIN? How would I be able to apply?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

... WHat's your entity type ... LLC, Corporation, partnership?

Expert:  Lane replied 1 year ago.

Essentially BOTH will have to be there, but not necessarily for you.

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Only one with an ITIN (social security number or individual Tax ID (ITIN)) can apply for the EIN.

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However, the U.S. citizen can be the one (as what's called nominee) to apply for the EIN ... which is required to file a 1065 (partnership return), 1120-S (S-corp), or 1120 (C-Corp) for the business

Expert:  Lane replied 1 year ago.

The term nominee has evolved over the years ... at one time, it meant someone not connected to the entity at all.

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However, today, The IRS does not authorize the use of non-related nominees to obtain EINs. All EIN applications (mail, fax, phone, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the “responsible party,” controls, manages, or directs the applicant entity and the disposition of its funds and assets.

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But again, here, your partner as one of the owners, can do this.

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Expert:  Lane replied 1 year ago.

taxation on the shares at some but, in terms of the 83(b) election, this would have no value to you if you did not expect to have taxation on the shares (at some point), so for THAT purpose, you WILL need (for the purpose of filing a U.S. return personally) to get a tax ID number for yourself.

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For THAT you wull need a form W-7: http://www.irs.gov/uac/Form-W-7,-Application-for-IRS-Individual-Taxpayer-Identification-Number

Expert:  Lane replied 1 year ago.

Finally, once you have your own ITIN (INDIVIDUAL tax ID number) then you, yourself, can obtain the EIN for the organization.

Expert:  Lane replied 1 year ago.

Let me know if you have questions

...

Lane

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If this HAS helped, and you don’t have additional questions, your positive rating … (by clicking or touching the stars or smileys on your screen) … would be appreciated!That’s the only way I'll be credited a portion of what you've paid.

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