Are you a non-US resident willing to start a business in the US but don’t already have an SSN or ITIN Number? Worry not, Easyfiling will guide you through the process of obtaining an EIN without an SSN.
Before moving towards the steps, first, let’s talk about SSN (Social Security Number) and EIN.
What is SSN?
SSN (Social Security Number) is a nine-digit number that is used to track a U.S. worker’s income and determine benefits. It was created in 1936 as a part of The New Deal to provide for retirement and disability benefits.
Uses of SSN
There are various uses for having (SSN) a Social Security Number:
1. For Applying For The Job
While applying for the job, SSN is a must. You must be able to provide your SSN to your employer so that the accounting department can use this number to report your income to the IRS and your social wages to the Social Security Administration. Also, your employee will use it for state income tax reporting purposes as well.
Some employers need SSNs to verify whether you can work legally in the U.S. in E-verify.
2. Opening An Account With U.S. Finance Institute
As per the Federal Government guidance since 1970, customers have been required to present SSN or ITIN to the banks, for Financial institutions to check their credit, report their investment income or losses to the IRS, and manage their accounts.
3. While Applying For A Federal Loan
The government will use your SSN to verify if you are eligible or not. For example, if you are willing to apply for a federal loan you must not be involved in other federal loans, have eligible citizenship or visitor status, and most male applicants must have registered with selective service.
4. Applying for various Public Assistance
Normally, different public assistance organizations like unemployment benefits or Social Security Disability insurance are supervised by federal or state government agencies, who use SSNs to identify people who aren’t asking for a benefit they are entitled to.
5. Enrollment in Medicare
Your SSN will be required to enroll in Medicare, As the Social Security Administration works with the Centers for Medicare.
6. Applying for the Passport
When applying for the U.S. Passport, you are compelled to provide SSN, if you have one. However, if you don’t have an SSN, you are required to provide a sworn statement that you were never issued one.
7. Tax Returns
SSN is required while claiming for your tax return as the IRS verifies it to match your reported income on your tax return with the income you are employer and financial institutions have reported as having paid to you.
8. Driver’s License
Some U.S. states may ask you to provide an SSN if you have it when applying for a driver’s license.
What is EIN?
EIN(Employee Identification Number) is a nine-digit number assigned by the IRS to identify the tax accounts of employers and certain others who have no employees. The IRS uses the number to verify the taxpayers who are required to file various business tax returns. Every business in the U.S. must have an EIN. EIN is also known as the Federal Tax Identification Number.
Uses of EIN
There are various uses of having (EIN) Employer Identification Number:
1. To open a bank account:
Most banks in the USA require businesses to submit an EIN to open a bank account. Your bank will use the EIN to conform with the tax authority and the legitimacy of your firm.
2. Apply for business permits
If you want to apply and get business permits as a non-resident without an SSN, possessing an EIN can be great for establishing a firm.
3. Protech yourself from identity fraud
An EIN is a number that distinguishes your personal and corporate money. By providing EIN, you can keep your SSN more secret, reducing the chances of a criminal acquiring and then not allowing the use of your money.
4. Form Company Credit card
Businesses in the U.S. can issue a credit card with an EIN. An EIN is essential to form a company credit history.
5. Hire Employee
Hiring an employee in the U.S. requires an EIN. If you want to grow your firm to the point where you necessarily need employees, applying for an EIN is a must. It helps you create a payroll structure when you recruit someone and cause no delays in the recruitment process.
6. Apply for a Credit Card
Businesses in the U.S. can issue a credit card with an EIN. Having an EIN allows your business to have an identity. Most credit card processor requires you to have an EIN to open an account with them.
7. Apply for loan
If you are willing to apply and get a loan, most institutions will require you to have an EIN. If you have an EIN, you can speed things up related to business loan applications.
How Do I Get an EIN Without an SSN?
Step 1: Identify your options for applying EIN
As a non-resident, you have two options to apply for an EIN without an SSN:
- Applying for an EIN using form SS-4
- Applying For an EIN with ITIN (Individual Taxpayer Identification Number)- If you prefer to apply from ITIN, complete form W-7 and submit it to the IRS with additional required documents.
Step 2: Collect Required documents
Gather the following pieces of information before you apply for EIN
- Business name.
- Type of entity
- Location
- Additional important business details
Step 3: Complete Form SS-4 and submit
- Download form SS-4 from the IRS site
- Fill out the basic information about your business ( business name, address, entity, mailing address..etc).
Submit the filled form to the IRS via Fax or Mail
Step 4: Wait for the process
The process will take about five to six weeks.
Step 5: Receive your EIN
Once your application is completed, IRS will send you your EIN to your mailing address.
Conclusion
Acquiring an EIN without an SSN can be a strenuous task If you are a US non-resident and planning to obtain one. Here at Easyfiling, we understand your needs and requirements and offer a full range of services. So you don’t have to worry about your EIN. Our team of experts will handle all your work with a trustworthy protocol. All you have to do is sit back and relax until we complete the process of EIN and get it delivered to your mailing address.
Frequently Asked Questions (FAQs)
What is the estimated time for the process of EIN?
It will take about 5-6 weeks. Applying for the EIN at least 6-7 weeks before the date you need it is recommended.
Can we obtain an EIN without Having an SSN?
Yes, you can obtain an EIN without having an SSN.
What does EIN do?
EIN is used by the IRS (Internal Revenue Service) to verify your business for tax reporting purposes.
Nabin Adhikari
