EIN Services for Foreign Sellers
EIN services for foreign sellers are an essential part of complying when conducting business in the U.S.
You will want to obtain an EIN from the IRS before you sell on a U.S. marketplace facilitator platform (such as Amazon, eBay, Walmart). Although an EIN is not required for most marketplace facilitator platforms, it is recommended.
A foreign Amazon.com FBA seller (with physical inventory stored in the U.S.) will need it to file a U.S. federal and state sales tax returns. Why?
When a foreign Amazon.com seller imports goods into the U.S. and use FBA, this creates effectively connective income (ECI), but not a permanent establishment. Therefore the foreign operating business will need to submit a U.S. return.
If you operate as a foreign individual, that means you will file a 1040NR, W-7, and 8833 (assuming there is a tax treaty with your country).
If you operate as a foreign corporation, you will file form a protective return 1120F and 8833.
You will also need an EIN for sales tax registrations and at other stages in your business. It is easier to have it in place upfront vs. going through a verification process after your account is up and running.
A Tax ID Number also called EIN. This is obtained through the IRS on form SS4. This is required for registering for sales tax permits, and it is easier to set up your tax settings on a new platform with an EIN, vs. updating it after you are in full sales mode.
EIN services for foreign sellers will also help with customs.
The marketplace facilitator, in most cases, will need to verify any new EIN.
Even though it appears to be easy to obtain an EIN from the IRS over the phone, as a foreign entity, we have seen many mistakes on the SS4 application regarding taxation type and start date. These mistakes created extra work and fees that were unnecessary.
When you apply for an EIN, you may also need to file IRS form 8832 or need an EIN on your foreign entity.
EIN Options and our Fees:
$250 EIN Service + File IRS form 8832
This is recommended for a U.S. single member LLC owned by a foreign individual. Or for a U.S. single member LLC owned by a foreign entity (where the foreign entity already has an EIN).
$400 EIN Service (both US LLC and Foreign Entity) +
File IRS form 8832
This are recommended for a U.S. single member LLC owned by a foreign entity (where the foreign entity DOES NOT already have an EIN).
After payment on the link above, you will receive an email with a link to an EIN web form. The webform has instructions and tips on how to provide us what we need to apply for your EIN.
Once we received your webform, we will receive it for accuracy and follow up with any questions. We must be clear on the taxation of your foreign entity and what US tax return is expected to be filed, even if a protective return.
We will prepare the SS4 application for your signature before we submit to the IRS.
Once you submit your web form to our team, and the SS4 is emailed to you for your signature and returned via email, our team will fax it to the IRS within 24 hours. The IRS time frame ranges from 6-15 business days, assuming phone access is not available.
Yes, this is the most important part of the process. Especially the information that we need to put on 9a. Our team has a very complex chart to review to match up to your situation and the correct tax return expected by the IRS. You only get once chance to do this correctly otherwise the following with the IRS with returns and amended returns is a real challenge later.
Yes, we have an internal chart that matches up the tax return and due date required based upon how your SS4 is filled out. We work with tax firms that are on the same page and have experiences filing the required return and treaty disclosures as required. The tax firm fees to file returns are separate of course.