Here’s an undeniable fact: Your company won’t be operational until you have a bank account. To open a bank account, you must obtain an EIN.
EIN (Employer Identification Number) is the tax number, i.e. the identification number of your company. The IRS, banks, and other institutions will recognize your company by this number.
To obtain it as a non-resident without a Social Security Number (SSN), you have to submit an SS4 form to the IRS.
Because of this, understanding and completing Form SS-4—necessary to get your Employer Identification Number (EIN)—is one of the initial stages in establishing your US LLC.
This document is your pass to recruiting staff, opening a bank account in the US, and filing taxes at the federal level.
Introduction to Form SS-4
What is Form SS-4?
The application for an Employer Identification Number (EIN), Form SS-4, is a document that firms operating in the United States must submit to get a unique nine-digit number issued by the IRS.
This number is required for several business operations, such as hiring staff, opening a bank account, and filing taxes.
The form itself requests several standard details concerning the company, like its postal address, legal name, and entity type.
Importance of Form SS-4
To understand the core of it, we will explain it most simply: Form SS-4 is a tool that provides you with the EIN.
An EIN obtained through this form acts as your company’s federal tax ID, similar to a Social Security number for individuals. Without an EIN, you would be unable to create a US bank account, which is necessary for managing your accounts and completing transactions.
You may officially participate in the US market by acquiring an EIN using Form SS-4, basically.
Who Needs to File?
Individuals and companies seeking to do business in the United States.
This covers non-residents creating companies, partnerships, estates, trusts, and LLCs in the US. You must complete this form if you are establishing a new company, recruiting staff, or opening a bank account in the United States.
Even if you are a sole proprietor or the owner of a single-member LLC, you must get an EIN using Form SS-4.
Additionally, if you want to modify the organizational structure of your firm or are subject to IRS withholding, you must complete this form.
How to Fill Out Form SS-4
Step-by-Step Guide
Filling out Form SS-4 may seem difficult, but breaking it down into small parts helps make the process easier.
- Section 1, where you’ll enter the legal name of your business.
- Section 2, you need to provide the trade name if it’s different from the legal name if you have any.
- Section 3, fill in the executor, trustee, or “care of” name if applicable.
- Sections 4 to 6 require your mailing address details.
- Section 7, enter the name and SSN or ITIN of the responsible party, if any.
- Section 8 asks for the type of entity; ensure you select the correct one. Section 9 indicates the reason for applying.
- Sections 10 to 18 cover additional details about your business, such as the date it started and its principal activities. Finally, sign and date the form.
Friendly advice: Double-check all fields to ensure accuracy before submitting.
Common Mistakes to Avoid
First, make sure that all of the information supplied is correct and matches your official documentation. Typos and incorrect information might cause processing delays.
Another common mistake is selecting the incorrect entity type in Section 8; double-check that you’ve chosen the correct category for your company.
Furthermore, be sure to accurately enter the responsible party’s information in Section 7, including their SSN or ITIN, if any. Problems can occur from missing information from sections or from giving not enough details, such as failing to provide the date of your business’s founding in Section 10.
Lastly, remember to date and sign the document. Such a small mistake could leave your application invalid.
Tips for a Smooth Filing
Check out these few best practices that can make all the difference.
Before beginning the form, gather all of the relevant information and documentation. This covers the postal address, the legal name of your company, and information about the accountable person. To avoid mistakes, verify these details again.
Second, take your time completing the application. Rushing might result in mistakes that cause a delay in the granting of your EIN. Read the IRS instructions and recommendations included with Form SS-4.
Recognize the particular criteria that pertain to candidates from outside the country.
If you have any questions concerning any of these areas, you might think about speaking with a formation specialist or tax expert.
What is EIN?
Employer Identification Numbers (EINs) are unique nine-digit numbers provided by the IRS to identify firms for taxation purposes.
Consider it your company’s Social Security number. Numerous commercial operations use this number. The first step toward handling your finances is opening a US bank account, which is required.
Why You Need an EIN
Anyone wishing to launch and run a business in the US, especially non-US residents, needs an EIN.
To begin with, obtaining an EIN is necessary in order to create a US bank account, which is essential for managing your funds and conducting business.
Moreover, an EIN is required to file federal and state taxes, ensuring that your company complies with all tax laws.
Make sure to read our in-depth article on EIN if you feel like you need more information.
After Filing Form SS-4
Tracking Your Application
After submitting Form SS-4, all you can do is wait and maybe call the IRS over the phone to check if your EIN has been issued. Sometimes they will provide it over the phone, and sometimes they will tell you to wait a few days more. You never know.
Also, be prepared to wait for an hour or two to get your turn to talk to the IRS agent over the phone. There are long waiting lines at all times.
If you’ve applied online, you should receive your EIN immediately upon completion. Please note, that this applies if you already have an SSN.
For mail or fax applications (including electronic fax), it generally takes about two to four weeks to receive your EIN. We at Neubase usually obtain the EINs in about 20 days, on average.
Be prepared to provide your application details, such as your business name and the date of submission. Keep a copy of your completed Form SS-4 and any confirmation notices you receive.
Having these documents on hand can help to speed up the process in the case of difficulties or delays.
It’s also important for non-US citizens to remember time zones and IRS office hours when submitting requests.
PRO TIP: Filling out the SS-4 Form and EIN is part of the Neubase process. Check out our Neubase packages.
What to Do Once You Receive Your EIN
Use your EIN to open a US business bank account. This will help you in receiving payments, paying vendors, and managing your accounts. Keep your EIN on hand for tax season as it will be needed to file both federal and state taxes.
Maintaining Compliance
Maintaining compliance is essential to making sure your company runs well and stays out of trouble with laws and regulations.
Once you get your EIN, you have to be sure that you use it appropriately on all company forms and tax documentation.
Keep accurate records for your company, including any ownership or address changes, and quickly report any changes to the IRS. Check your compliance to local, state, and federal tax requirements on a regular basis. If you employ people, be sure you are also paying your payroll taxes.
On-time submission of your yearly tax returns and any necessary quarterly filings is also crucial. To make sure you remember these deadlines, think about putting up reminders or hiring an accountant.
The Neubase process
We start the process by filling out a form on the Neubase website. You just have to click ‘Get started’, and our team will do the rest.
Conclusion
One of the most important steps in establishing a US business is learning about Form SS-4 and the EIN procedure.
With this information, you can guarantee that your business is recognized by banks, the IRS, and other institutions of interest. If you are handling this procedure alone, be sure that you stick to the detailed directions for completing Form SS-4.
Consider working with Neubase to provide you additional peace of mind. Grab your free ‘1-on-1’ consultation with Petar.
