UTFNR US-Tax-For-Non-Resident.com Live Help 24/7

Your American Tax Partner Call now U.S. +1 202-559-0208
 
US
COMPANY
FORMATION
] US
COMPANY
EIN
] NON
RESIDENT
ITIN
] COMPANY
INCOME
TAX
] NON
RESIDENT
TAX
] EXPAT
AMERICAN
TAX
]
                       
 
     
  Chat with us-->>  
 
 
  Home  
 
 
  Company  
 
 
  Services  
 
 
  US Company
 
  EIN
 
  ITIN
 
  Business Tax
 
  NRA Tax
 
  Expat Tax
 
 
 
  Client Login  
 
 
  Contact  
 
 
  US Tax News  
 
 
  Terms of Service  
 
 
     
     
  Employer ID Numbers (EINs)  
     
  An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity.
 
Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. Before you can apply for EIN, you must set up a US LLC or a Corporation and obtain a Secretary of State filing / charter number for your US company.

Do You Need an EIN?
How Long Will it Take to Get a Number?
How EINs are Assigned and Valid EIN Prefixes
Canceling an EIN – Closing Your Account
Who is a Responsible Party?
Apply for an EIN Online
 

Do You Need an EIN?

 

You will need an EIN if you answer "Yes" to any of the following questions. For your convenience, clicking on the "Yes" option will take you directly to How to apply for an EIN.

Do you have employees?

YES

NO

Do you operate your business as a corporation or a partnership?

YES

NO

Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?

YES

NO

Do you withhold taxes on income, other than wages, paid to a non-resident alien?

YES

NO

Do you have a Keogh plan?

YES

NO

Are you involved with any of the following types of organizations?

  • Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
  • Estates
  • Real estate mortgage investment conduits
  • Non-profit organizations
  • Farmers' cooperatives
  • Plan administrators
YES

NO

 
     
  How Long Will it Take to Get a Number?  
     
  After you submit your EIN order and it is confirmed by our billing department, you will receive an email with EIN application to review, sign and return to us via email or fax. Our EIN service is designed to obtain your Employer ID number within 30 business days. If you require the EIN immediately you can sign up to our Expedite EIN service and obtain the EIN within 48 hours. Our service includes: preparing all the EIN application documents, filing the application with the Internal Revenue Service, Obtaining EIN confirmation letter (this document is required by most banks and vendors as proof of obtaining EIN).   
     
 

How EINs are Assigned and Valid EIN Prefixes

 

Prior to 2001, the first two digits of an EIN (the EIN Prefix) indicated the business was located in a particular geographic area. In 2001, EIN assignment was centralized, although all 10 campuses can assign an EIN, if necessary.

  

As a result of the centralization effort, the EIN prefix no longer has the same significance. The EIN prefix now only indicates which campus assigned the EIN. Each campus has certain prefixes available for use, as well as prefixes that are solely for use by the online application and the Small Business Administration. The prefix breakdown is shown in the table below:

  

Campus/Other Location   Valid EIN Prefixes

Andover

10, 12

Atlanta

60, 67

Austin

50, 53

Brookhaven

01, 02, 03, 04, 05, 06, 11, 13, 14, 16, 21, 22, 23, 25, 34, 51, 52, 54, 55, 56, 57, 58, 59, 65

Cincinnati

30, 32, 35, 36, 37, 38, 61

Fresno

15, 24

Kansas City

40, 44

Memphis

94, 95

Ogden

80, 90

Philadelphia

33, 39, 41, 42, 43, 48, 62, 63, 64, 66, 68, 71, 72, 73, 74, 75, 76, 77, 81, 82, 83, 84, 85, 86, 87, 88, 91, 92, 93, 98, 99

Internet

20, 26, 27 (45, 46 and 47 are being reserved for future use)
Note: Prefixes 26, 27, 45, 46 and 47 were previously assigned by the Philadelphia campus.

Small Business Administration (SBS)

31
 
     
  Canceling an EIN - Closing Your Account  
     
 

Once an EIN has been assigned to a business entity, it becomes the permanent Federal taxpayer identification number for that entity. Regardless of whether the EIN is ever used to file Federal tax returns, the EIN is never reused or reassigned to another business entity.

  

The IRS cannot cancel your EIN. However, if you receive an EIN but later determine you do not need the number (the new business never started up, for example), the IRS can close your business account. The EIN will still belong to the business entity and can be used at a later date, should the need arise.

  

To close your business account, please go to our EIN order form and check the "Close EIN" item.

 
     
 

Who is a Responsible Party?

  

All EIN applications (mail, fax, phone, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the “responsible party,” controls, manages, or directs the applicant entity and the disposition of its funds and assets. If there is more than one responsible party, the entity may list whichever party the entity wants the IRS to recognize as the responsible party. 

  

According to the Instructions for the current revision of the application, the “responsible party” is defined as follows:

  

For entities with shares or interests traded on a public exchange, or which are registered with the Securities and Exchange Commission, “responsible party” is (a) the principal officer, if the business is a corporation, (b) a general partner, if a partnership, (c) the owner of an entity that is disregarded as separate from its owner (disregarded entities owned by a corporation enter the corporation’s name and EIN), or (d) a grantor, owner, or trustor if a trust.

  

For all other entities, “responsible party” is  the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. The ability to fund the entity or the entitlement to the property of the entity alone, however, without any corresponding authority to control, manage, or direct the entity (such as in the case of a minor child beneficiary), does not cause the individual to be a responsible party.

  

Nominees

  

A “nominee” is someone who is given limited authority to act on behalf of an entity, usually for a limited period of time, and usually during the formation of the entity.  The “principal officer, general partner,” etc., as defined by the IRS, is the true “responsible party” for the entity, instead of a nominee. The “responsible party” is the individual or entity that controls, manages, or directs the entity and the disposition of the entity’s funds and assets, unlike a nominee, who is given little or no authority over the entity’s assets. 

  

The Internal Revenue Service has become aware that nominee individuals are being listed as principal officers, general partners, grantors, owners, and trustors in the Employer Identification Number (EIN) application process. A nominee is not one of these people. Rather, nominees are temporarily authorized to act on behalf of entities during the formation process. The use of nominees in the EIN application process prevents the IRS from gathering appropriate information on entity ownership, and has been found to facilitate tax non-compliance by entities and their owners.

The IRS does not authorize the use of nominees to obtain EINs. All EIN applications (mail, fax, phone, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the “responsible party,” controls, manages, or directs the applicant entity and the disposition of its funds and assets.

  

To properly submit a Form SS-4, the form and authorization should include the name, Taxpayer Identification Number and signature of the responsible party. Third party designees filing online applications are reminded of their obligation to retain a complete signed copy of the paper Form SS-4 and signed authorization statement for each entity application filed with the IRS. Nominees do not have the authority to authorize third party designees to file Forms SS-4, and should not be listed on the Form SS-4.

  

If a nominee is used in the state formation process and the true responsible party has not yet been identified, the entity must identify that individual before applying for an EIN.

The IRS will continue to pursue enforcement actions to prevent the misuse of EIN applications.

 
     
  Special Promotions:  
 
US Company Formation $499 + state fees start  
US Company EIN $199 start  
Non US Resident ITIN $199 start  
Business Tax (LLC / Corporation) $99 and up get quote  
Non Resident Tax Return $199 start  
Expatriate American Tax Return $250 start  
 
     
     
 
     
  All Rights Reserved   |   US-Tax-For-Non-Resident.com   |   2010   |