United States launch process requires obtaining an Employer Identification Number (EIN). This unique identifier is essential for tax and payroll reporting, and U.S. banks typically require one to establish accounts.

An EIN is required for several reasons:

  1. Tax and Payroll Reporting: It’s necessary for reporting taxes and payroll information to the IRS.
  2. Bank Account Establishment: U.S. banks usually require an EIN to open accounts for businesses.
  3. Form 5472 Filing: Foreign-owned U.S. corporations or foreign corporations engaged in U.S. business activities must file Form 5472, which requires an EIN.

Foreign entities have several options for obtaining an EIN:

  1. By Telephone: International applicants can call 267-941-1099 (not toll-free) Monday through Friday, 6:00 a.m. to 11:00 p.m. (Eastern Time), to apply for an EIN. It’s crucial to complete Form SS-4 before calling and have all necessary information ready.
  2. EIN Online: The online application process is available for those with a valid taxpayer identification number (SSN, EIN, or ITIN). The application must be completed in a single session, and the EIN is immediately available upon approval.
  3. By Mail or Fax: Applications can be submitted via mail or fax, with processing times varying from 4 business days (fax) to 4 weeks (mail).

Once obtained, it’s important to keep the IRS informed of any changes to the business, including mailing address, business location, or responsible party. Changes to the responsible party must be reported within 60 days using Form 8822-B, available on the IRS website.

Obtaining an EIN is a crucial step for foreign entities conducting business in the United States. It facilitates tax compliance, banking transactions, and regulatory filings.

US expansion is a complex process. The US market has its own unique set of business norms, etiquette, customs, and best practices. One common mistake in a US expansion strategy is taking the “Do It Yourself” (DIY) approach when expanding into the US market. Beyond obtaining an EIN, the company will need to consider multiple details when launching your US business operations. You can take a US Readiness Assessment and find consultants specializing in helping companies launch in the US.

Rose Group CPAs are here to help you navigate the complexities of U.S. taxation and ensure compliance with all relevant regulations.