Is it necessary to apply for a Tax Identification Number (EIN)?
Foreign-Owned U.S. LLCs Required to Obtain Employer Identification Number (EIN)
Foreign-owned Limited Liability Companies (LLCs) operating in the United States are mandated to obtain an Employer Identification Number (EIN), regardless of whether the owner has a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
The EIN is a unique nine-digit federal tax identification number assigned by the Internal Revenue Service (IRS) to business entities in the United States. It is essential for federal tax reporting and to comply with IRS requirements, including filing Form 5472 and Form 1120 for foreign-owned single-member LLCs.
Key Points for Foreign-Owned U.S. LLCs
- Requirement to have an EIN: All foreign-owned single-member LLCs classified as disregarded entities must get an EIN to fulfill IRS filing obligations like Form 5472 and 1120.
- Application without SSN or ITIN: If the foreign owner lacks an SSN or ITIN, they cannot apply for an EIN online. Instead, they must complete IRS Form SS-4, write “Foreign” at the top, and submit it by fax or mail to the IRS.
- Processing times: Fax requests typically receive EIN confirmation within 4–5 business days. Mailed applications take 4–6 weeks.
- Who is considered a foreign person: Any nonresident alien individual, foreign company, corporation, partnership, trust, or estate qualifies as a foreign person for these purposes.
- Purpose of EIN: Beyond tax filings, the EIN is important for opening U.S. bank accounts, hiring employees, and accessing other business services.
In summary, foreign owners of U.S. LLCs must obtain an EIN to comply with IRS regulations, especially for tax reporting with Form 5472. The process requires submitting Form SS-4 differently if they don't have an SSN or ITIN, with communication mainly through fax or mail.
This EIN requirement ensures foreign-owned LLCs can meet U.S. tax obligations and participate fully in U.S. financial and legal business systems.
[1] IRS.gov, "Foreign-Owned U.S. LLCs and EIN Requirements," Link
[2] IRS.gov, "How to Apply for an EIN by Fax or Mail," Link
[3] IRS.gov, "Opening a U.S. Bank Account as a Foreign Person," Link
[4] IRS.gov, "Hiring Employees," Link
- Foreign-owned LLCs in the U.S. are required to have an Employer Identification Number (EIN) to meet federal tax obligations, particularly when filing Form 5472 as a single-member LLC.
- For foreign owners without a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), the EIN application process involves completing Form SS-4 and submitting it by fax or mail to the Internal Revenue Service (IRS).
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