What is EIN? EIN Review

EIN Format

An EIN is usually written as 00-0000000, to distinguish it from a Social Security number which is usually written as 000-00-0000.

Prior to 2001, the first two digits of the EIN (EIN prefix) indicated that the business was located in a specific geographic area. In 2001, each of the 10 regions shown in the figure below could also be assigned an EIN if necessary.

Eligibility

If you own a company or entity outside the United States: Companies and entities outside the United States can also apply for an EIN from the IRS. Generally speaking, companies and entities outside the United States need to apply for an EIN number from the IRS if they have income in the United States that needs to be taxed, need to employ staff in the United States, or need to meet the IRS withholding requirements. For example, if a Chinese company has business in the United States and a US company needs to pay the company, then the Chinese company may need to apply for an EIN number.

Individuals applying for EIN: As an individual, whether living in the United States or outside the United States, you can apply for EIN. The business form in the United States includes not only a limited company form, but also a sole proprietorship form (Sole Proprietorship). Individuals can apply for EIN from the IRS in the form of a sole proprietor. For many Chinese individuals who need to open a sales account on Amazon or EBAY, EIN or ITIN (US Individual Tax Number) is a must, so applying for EIN or ITIN is a must.

Application Materials

1. Registration certificate of the U.S. company;

2. The business address or registered address of the U.S. company;

3. The purpose of the US company applying for a tax number, such as when a new company starts business or when the company needs to open an account;

4. The industry in which the American company is engaged, such as trade, finance, consulting, wholesale, medicine, construction, etc.;

5. Other information about the company’s operations

How to Apply

1. Apply online on the IRS website

2. By fax or mail: You can find Form SS-4 [ SS-4 download as pdf ] on the IRS website to apply.

3. By phone: (800) 829-4933.

Application Process

1. Send the U.S. Employer Identification Number (EIN) Application Information Collection Form to the customer and fill it out.

2. Complete the SS-4 form of the IRS based on the information and materials provided by the customer and after confirmation with the customer.

3. After completing the application form, please ask the customer to sign and confirm;

4. Generally speaking, the application for the U.S. Employer Identification Number (EIN) is completed within ten working days. If the client needs expedited processing, the EIN number can be provided to the client within two working days at the shortest.

time

It takes 1 working day for a Chinese individual to apply for a U.S. federal tax ID number (EIN);

It takes about 5 working days for a U.S. individual or company to apply for a U.S. federal tax ID number (EIN).

FAQ

Q: Who needs a U.S. Employer Identification Number (EIN)?

A: The Employer Identification Number (EIN) is also called the Federal Tax Number. According to US law, most businesses or entities generally need an EIN as an identification number for the IRS so that they can handle tax-related matters. The US EIN number is applicable to companies or entities registered in the United States, companies or entities registered outside the United States, and individuals.

Q: My company in the United States does not have an EIN number. Can it still operate?

A: In principle, you can operate for a period of time. Unless you are self-employed, you cannot open a bank account, file taxes, or handle many other matters with other company forms. Therefore, without an EIN number, a company in the United States basically cannot operate.

Q: I am a non-U.S. citizen and resident, but I have opened a business in the U.S. Do I need an EIN number for my business?

Answer: Yes.

Q: Under what circumstances does my Chinese company need a US EIN number?

A: Companies and entities outside the United States can also apply for an EIN from the IRS. Generally speaking, companies and entities outside the United States need to apply for an EIN number from the IRS if they have income in the United States that needs to be taxed, need to employ staff in the United States, or need to meet the IRS withholding requirements. For example, if a Chinese company has business in the United States and an American company needs to pay the company, then the Chinese company may need to apply for an EIN number.

Q: I am a Chinese citizen and have never been to the United States. But I need to open a selling account on Amazon. I need an EIN. Can I get it?

A: As an individual, whether you live in the United States or outside the United States, you can apply for and apply for an EIN. The business form in the United States includes not only a limited company form, but also a sole proprietorship form. Individuals can apply for an EIN from the IRS in the form of a sole proprietor. For many Chinese individuals who need to open a sales account on Amazon or EBAY, EIN or ITIN (US Individual Tax Number) is a must, so applying for an EIN or ITIN is a must.

Q: What is the difference between EIN and ITIN?

A: EIN is a number issued by the IRS for commercial entities. ITIN (Individual Taxpayer Number) is a number issued by the IRS for US taxpayers. The two numbers are different in terms of specific applications. From a company's perspective, you must apply for EIN. If you are an individual, if you need to open a sales account on Amazon or EBAY, both EIN and ITIN are acceptable.

Q: Is EIN valid for life? Do I need to renew it every year?

A: Once an EIN application is successful, it is valid for life. The IRS does not charge any additional fees each year.

Q: How long does it take to obtain a US EIN number?

A: Generally speaking, we can complete the application for the U.S. Employer Identification Number (EIN) within 10 working days, and the client can obtain the EIN number. If the client needs to expedite the process, the EIN number can be told to the client in as little as 5 working days. The IRS will then mail the official written document with the EIN printed on it to the address you specify by ordinary mail, which usually takes about four weeks. If your address is in China, it will take longer, about eight to ten weeks.

Q: I need a US EIN number urgently. Can it be expedited?

A: We provide expedited service. Generally speaking, customers can get an EIN number within five working days.

References

• 1. How to Apply for an EIN: Official website [reference date 2018-05-02T16:00:00.000Z]
• 3. How EINs are Assigned and Valid EIN Prefixes: Official website [reference date 2018-05-02T16:00:00.000Z]