Entrepreneurs from around the globe often choose to incorporate their businesses in Delaware, drawn to the state’s respected corporate laws. Aspiring to build the next industry giant, like Facebook, Google, or Uber, these founders rely on Delaware’s business-friendly environment to bring their visions to life. At Startup Accountant Inc, we are passionate about assisting entrepreneurs in forming their companies, acquiring their Federal Tax ID Numbers, and supporting them as they work toward their goals.
A common inquiry from international entrepreneurs involves obtaining a Federal Tax ID Number (EIN) for their new business. Many assume that without a U.S. Social Security Number (SSN), U.S. address, or Individual Taxpayer Identification Number (ITIN), they are ineligible to acquire an EIN and, consequently, form an LLC in Delaware. However, this is a misconception. Non-U.S. citizens can obtain an EIN and establish their Delaware business without a U.S. SSN.
How to Secure an EIN without an SSN
The process of obtaining an EIN as a non-U.S. citizen begins with filling out and submitting IRS Form SS-4. This form must include the business address, which can be located anywhere in the world. The IRS’s primary concern is the location of business operations, not the address of the business owner.
While obtaining an EIN online requires a U.S. SSN or address, international applicants can still apply for an EIN by mailing or faxing their SS-4 form to the IRS. As part of the application, the applicant must provide a copy of the passport for the individual designated as the responsible party.
It’s important to be diligent when applying for an EIN as a foreigner. If the application is improperly completed or difficult to read, the IRS may reject it and send a letter of rejection. This process can take several weeks, and applicants will have to begin the process anew.
Why Professional Assistance is Crucial
At Startup Accountant Inc, our dedicated Filings Department ensures that your SS-4 form is completed accurately and submitted in a timely manner. By entrusting us with your application, you avoid delays and complications with the IRS. If any issues arise, our team will contact the IRS directly to resolve them, saving you time and effort so that you can focus on growing your business.
Typically, we can secure an EIN for international clients within seven to twenty business days, once we have received the signed SS-4 form.
Understanding the Role of the Responsible Party
The “responsible party” on the EIN application is the individual who controls, manages, or directs the business entity and its financial matters. For corporations, the responsible party must be an actual person, though this person can be an officer of the corporation and reside anywhere in the world. Similarly, for LLCs, the responsible party can be a member or managing member, regardless of their location. This individual simply needs to sign the document and return it via email or fax.
Should the EIN not be processed in a timely manner, Startup Accountant Inc will follow up with the IRS on your behalf. This ensures that your application is handled efficiently, allowing you to avoid the frustration of dealing with the IRS directly.
With our expert assistance, acquiring an EIN and establishing your Delaware business as a non-U.S. citizen is a smooth and straightforward process.