Non-residents who want to set up a business in the United States must complete a set of processes. An important step in this process is to get an Employer Identification Number (EIN). This number is issued by the Internal Revenue Service (IRS) and is a way to uniquely identify your business. Using this number, you can start operations, hire employees, pay taxes, build credibility for your business, accept payments, and more.
However, obtaining this EIN requires many documents and involves complex steps. It can also throw up some challenges that are unique to non-U.S. residents. This EIN guide for non-resident business owners 2025 lays down all the guidelines, challenges, and corresponding solutions to get an EIN for your business. In case of any more doubts or questions, reach out to the international business experts at Manay CPA who can guide you through the process. We are a trusted partner helping thousands of companies to set up business operations in the United States.
Why EIN is Essential for Non-Resident Businesses?
An EIN is a unique nine-digit identifier that businesses can use for many purposes. Before starting operations, all businesses that meet certain criteria must have an EIN. Below are a few reasons to apply for an EIN.
Business Legitimacy
Establishing trust in your business is vital to attract customers, employees, investors, and other stakeholders. EIN provides legitimacy for your business because the IRS issues it after verifying your submitted documents. In this sense, an EIN is proof that your business is operating within the established U.S. laws and regulations.
Banking Requirements
To open a bank account, you need an EIN, as banks use it to verify the identity of your business and its nature of operations. Every bank has to comply with mandatory laws like Know Your Customer (KYC), Know Your Business (KYB), and Anti-money Laundering (AML) to prevent illegal transactions. This is why banks require an EIN to do a background check and through it, comply with the above laws.
Tax Compliance Benefits
EIN is necessary to file taxes at the federal and state levels. Also, you will have to include EIN while conducting certain transactions. With this number, the tax authorities can track your financial compliance and ensure that you comply with U.S. tax laws.
Due to the above reasons, EIN is mandatory for all non-U.S. citizens who want to start a business in the United States. Note that an EIN is not a sensitive document like the Social Security Number (SSN) of individuals. Hence, it is distributed in every official communication and even included in advertising and other materials to establish legitimacy.
EIN Application Requirements for Non-Residents
There are strict requirements to apply for an EIN, and non-residents must adhere to them. Let’s look into the eligibility criteria, documentation, and application processes to help you get started.
Eligibility Criteria
As a first step, check if you need an EIN. Businesses that meet the following criteria must apply for an EIN:
- Must have employees or plan to hire in the future.
- Should have to pay employment, alcohol, tobacco, or other taxes.
- Must withhold taxes on income, paid to a non-resident alien.
- The business type must be:
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- Partnership
- Limited Liability Corporation (LLC)
- Corporation
- Estate
- Trust
- Individual Retirement Account (IRA)
- Farmers’ cooperative
If you are eligible, the next step is to gather the required documents.
Required Documentation
Before you apply for an EIN, form your business entity through your state. Once you’ve registered, collect the below documents to apply for EIN.
- Download and fill out the SS-4 application form.
- Include the following information in the form, along with each individual’s personal taxpayer identification number, where required.
- Name of the company’s principal officer.
- Grantor
- General partners
- Trustor
- Owner
- Type of entity
- Reasons for applying.
- Start or acquisition date
- The business industry.
Note that the person responsible for the business, who could be an owner, agent, or with any other title, must be an individual and not an entity. In other words, a business cannot be an agent for starting another business. The only exception is when the person responsible is a government entity.
Application Methods
After you fill out the SS-4 form, you can submit it to the IRS in the following ways.
- Fax your form to the IRS at 855-641-6935. If the form is filled out correctly, you will get the EIN within four business days.
- Mail or post the form to the following address – Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. It takes about four weeks to get your EIN. This is the slowest option to obtain your EIN.
- Fill out the form online to get an EIN immediately. This is the fastest and the most preferred way to get an EIN.
If you’re an international applicant who is not living in the United States, call 267-941-1099 (Monday to Friday) from 6 a.m. to 11 p.m. (Eastern Time). Note that this is not a toll-free number. The person calling must be the owner, agent, or an authorized representative who should answer questions about the information contained in the form. The EIN will be assigned over the phone.
Manay CPA can further assist you in filling out and submitting the application on your behalf.
Common EIN Challenges for International Entrepreneurs
Though EIN is free and can be done instantly online, non-U.S. entrepreneurs face challenges because they may not be physically present or not have the required information. Let’s understand the key challenges and how best to address each.
No SSN Situations
According to the IRS, all EIN applications must have the Social Security Number (SSN) or the Individual Taxpayer Identification Number (ITIN). However, these numbers are available only for U.S. citizens and some non-citizens who are eligible to work or study. For others, getting an SSN or ITIN is not easy, unless there’s a valid non-work reason.
The easiest way to overcome this challenge is to hire a reliable American agent to act on the company’s behalf and use the agent’s SSN for processing.
Address Requirements
Like SSN, non-U.S. citizens may not have a physical address, especially if they don’t reside in the U.S. In such situations, it can be difficult to meet the address requirements for an EIN application. One solution is to hire agents to represent the company, so the registered address of the agent can be used in form SS4. Another option is to use a virtual address, but the owner or agent representing the company must be ready to answer further questions, if required.
Verification Processes
The verification process is straightforward in most cases. However, it can be a challenge when you are out of the country. You must call only in the specified time and the timezone differences can make it difficult. Also, there can be communication issues due to differences in accent, connectivity issues, and more. Again, it is best to have an American who can address questions on your behalf. It also helps if the agent resides in the country.
Other problems can include errors in filling out the form and misrepresenting key information about the business like the business structure, pin code, etc. All these problems can delay your EIN, thereby impacting your plans to start a business.
Manay CPA can handle all these problems for you. Schedule a consultation to get started.
EIN’s Role in Business Operations
EIN is one of the preliminary measures you must take to kickstart business operations in the U.S. It can be vital for the long-term success of your business in the following ways.
Banking Relationships
All banks require an EIN to open an account because it proves your business’s legitimacy and eases the background checking for banks. It also helps banks meet regulatory requirements like KYC and AML. With a bank account, you can start sending and receiving money, hiring employees, and more. Furthermore, a bank account keeps your personal and business finances separate.
Payment Processing
When you have a bank account, you can confidently receive money from your customers through credit cards and money transfers. More importantly, you can file taxes and meet the requirements of the U.S. taxation laws.
Even if any virtual bank or fintech company allows you to open a bank account without an EIN, businesses can face restrictions in account access. In some cases, the transaction and processing fees can also be high without an EIN, all of which can erode your profits.
Contractor Payments
If you want to hire workers, an EIN is mandatory for processing their payroll and wages. This is because you must withhold taxes from the payroll and report them to the IRS, for which you need an EIN. Also, you will have to issue W2 forms to employees, which again require an EIN. Another key benefit is that you can establish your business as a trustworthy one to hire top talent.
Due to the above reasons, almost every business in the U.S. applies for an EIN to ensure smooth operations.
Maintaining EIN Compliance
Obtaining an EIN is not a one-time task, as you must stay on top of the changes and take the necessary steps for compliance. These measures keep your EIN relevant and useful for the business. Let’s explore how you can maintain EIN compliance.
Annual Obligations
In order to have a valid EIN, businesses must meet the following annual obligations.
- File income tax returns, though the exact form depends on the business structure and entity type.
- If the business has employees, it must withhold income tax from the wages and report them to the IRS.
- Pay the employer’s share of taxes like Social Security and Medicare.
- If the business manufactures or sells certain products like tobacco or fuel, the appropriate excise taxes must be paid.
- Any applicable state and local taxes.
- Provide employees with income tax return forms like W2.
Reporting Requirements
Businesses operating in the U.S. have to file mandatory reports to the IRS. They include,
- Form 1099-NEC – If you have made any non-employee compensation, you must file Form 1099-NEC by January 31 of the year following the tax year.
- Form 1099-MISC – File this form by February 28 of the year following the tax year for paper returns and March 31 electronically if you have made the following payments.
- At least $10 in royalties or broker payments.
- At least $600 in rent, prizes, awards, and other income payments.
- Medical and healthcare payments.
- Crop insurance proceeds.
- Cash payments for fish or other aquatic life.
- Payments to an attorney.
- Any fishing boat proceeds.
Updates and Changes
While there is no export for EIN, you must report to the IRS when there are major changes to your business, like,
- Change of Address – File Form 8822 to update the new business address. Note that this must be done within 60 days of relocating to the new place.
- Change in Ownership – When the ownership or structure of your business changes, inform the IRS of the relevant changes.
In general, update the IRS with appropriate records to prevent future complications. You can hire the services of experienced companies like Manay CPA to handle these updates and filings for you.
Conclusion
Overall, applying for and getting an EIN is an important step in starting a business in the United States. However, this process is not easy because non-residents may not always meet the required conditions. We hope this EIN guide for non-resident business owners 2025 clarifies some key questions, such as the importance of an EIN, what you can do with it, how to apply for one, how to maintain the EIN, and more.
For further assistance, contact Manay CPA. This experienced company is trusted by non-residents looking to start business operations in the U.S. Its team of experts will work with you at every step to ensure that you meet all the EIN requirements.
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