Starting a US Company as a Non-US Resident (3): Getting an EIN, How Foreigners Fill In Form SS-4

This is part 3 of the series "Starting a US Company as a Non-US Resident": applying for an EIN.

The EIN (Employer Identification Number) is the company's tax ID. You need it to open a bank account, publish on the app stores, get paid, and file taxes. It has "Employer" in the name, but you need one even with no employees.

Why foreigners can't apply online

People with an SSN or ITIN can apply on the IRS website and get an EIN in minutes. Foreigners have neither, so they have to use the paper Form SS-4 and apply by fax or phone.

• Phone: Call the IRS international line at +1 267-941-1099, and you get the EIN during the call. The downside: the whole call is in English, and international calls often mean long waits
• Fax: Send the completed SS-4 and wait for the IRS to fax back. No English conversation needed, but it takes a few days

My English isn't good, so I chose fax.

Also, when you order from Northwest, you'll see them offer an EIN filing service for about $100. You don't need it. Applying yourself isn't hard, by phone or by fax. You can save that $100.

No fax machine? No problem

I rented a US fax number with Dropbox Fax, $3 for the first month. I used it both to send the form and to receive the IRS reply, all in the browser.

Two small tips:

• Convert to black and white before sending: Fax is black and white only, and light text in a scan can disappear. I turned the signed form into a high-contrast black-and-white PDF before sending
• The IRS has two fax numbers: One is for sending from a US fax service, and one is for calling from outside the US. When I wrote this, the first was 855-215-1627 and the second was 304-707-9471. IRS numbers change, so check the Instructions for Form SS-4 on the IRS website before you send

How to fill in the SS-4

First, download the latest SS-4 and the Instructions for Form SS-4 from the IRS website. You only need to fax page 1.

Here's how I filled it in, focusing on the lines where foreigners tend to get stuck:

• 1 (company name): Exactly the same as the name registered with the state
• 4a/4b (mailing address): Use the registered agent's address. Official IRS letters will be mailed here
• 5a/5b: Leave blank if it's the same as the mailing address
• 6: The county and state where the company is located
• 7a (responsible party): Your name
• 7b (SSN/ITIN): If you have neither, write Foreign. Don't leave it blank
• 8a/8b/8c: It's an LLC, 1 member, organized in the US
• 9a (type of entity): Choose Other and write "Foreign-owned U.S. disregarded entity-Form 5472". This exact wording is required by the instructions
• 10 (reason for applying): Choose Other and write "Foreign-owned U.S. disregarded entity filing Form 5472". Don't check "Started new business"
• 11: The company's formation date
• 12: Closing month of the accounting year. If you use the calendar year, write December
• 13–15: No employees and no payroll, so write 0 or N/A
• 16/17: Industry and business description. I wrote software, apps sold on the App Store
• 18: First application, so No
• Signature: Write your name and "Sole Member", sign and date, then add your phone and fax numbers

The wording on lines 9a and 10 looks strange, but it's what the IRS wants. It tells the IRS you are a foreign-owned single-member LLC that will file Form 5472 every year (covered in part 5).

How long it takes, and what you receive

I faxed on day 3, and the EIN was issued 4 days later. But the IRS fax reply took a few more days to arrive.

You receive three kinds of documents, and they're easy to mix up:

• EIN notice (fax): A letter the IRS faxes back with your EIN on it. It says it is not an official EIN verification document
• CP 575: The official EIN confirmation letter. It is mailed to the mailing address you gave (the registered agent), and takes a few more weeks. It is sent only once. If you lose it, they won't send another
• 147C: If you never got the CP 575 or lost it, you call the IRS and ask for this verification letter. You can ask them to fax it to you directly

So after you get your EIN, don't cancel the fax number right away. Wait until the CP 575 arrives. Otherwise, if you need a 147C, you'll still need it to receive the fax.

The fax notice is actually enough. When I opened my bank account, the CP 575 hadn't arrived yet. I submitted the fax notice, and the bank accepted it.

Should you keep your EIN secret?

An EIN isn't as sensitive as a password. Many documents and forms ask for it. But there's no need to make it public. Don't post it on social media or public websites.

Next step

With an EIN, you can open a bank account. In the next post, I explain how I opened a Mercury account online without going to the US.

This series

1. Overview: why, how long, and how much
2. Forming the company: state, registered agent, operating agreement
3. Getting an EIN: how foreigners fill in Form SS-4 (this post)
4. Opening a bank account: Mercury, fully online
5. Annual filings: the easiest to miss, the heaviest penalties