EIN Services for Foreign Sellers
EIN services for foreign sellers are an important part of being in compliance when conducting business in the U.S.
You will want to obtain an EIN number 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 up front 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).