If you need a US Tax id or EIN, the owner of the company files Form SS-4. The application is made by mail and an appropriate individual needs to fill out this form in addition to a W-9 says Aron Govil. In order for a person who lives outside of the US to get a US Tax id, they must have it applied for by the owner of the company who lives in the US and make sure that all appropriate documentation is sent along with this application.
- This would apply to the person who is the primary owner of a company. If there are multiple owners, it would be up to all of them to have this done.
- As with most tax id applications, you will need proof of identification so that your application can be verified. If you live outside of the US, then sending in copies or scanning and emailing them into us may be preferable since mail might take some time. The SS# should not be sent as it is not needed. Any requests for a person’s SSN should be refused and an appropriate individual should explain why this cannot be provided to you.
- The US Tax id (EIN) can also be applied for and given directly to a foreign company that has no US presence but does have clients who are US citizens or companies explains Aron Govil. This would apply if you were opening an offshore bank account or other financial services such as brokerage accounts. In these cases, the applicant will need to send in:
- The owner of the company must sign this form which means they must include their ID number on the application either by signing or including a photocopy of their ID with it. They would also need to provide proof of identity such as a copy of their driver’s license or passport. They must also include a valid address for them in the USA. This form can be sent directly to the IRS and this is why it has an address which has been provided by them specifically for this purpose:
- This address is in the United States and it is the only address for this specific service that is given by the IRS. If you contact them via phone or email they will not give you any other addresses nor will they tell you to send applications anywhere else outside of their guidelines. Anyone who tells you this is likely trying to scam you so please is very careful with all correspondence.
- Filing an application directly to the IRS can sometimes speed up how quickly a person gets their ID. As opposed to having someone file it on their behalf here in Panama. As that can delay things due to many factors. Such as the volume of requests or lack of knowledge about certain tax regulations. This can vary depending on who files it so please use your judgment. When deciding whether to have an application filed by someone locally in Panama or directly to the IRS says Aron Govil.
- The US Tax id, also known as an Employer Identification Number (EIN). IT is basically a type of identification given to businesses in both the United States and other countries. That are small enough that they are not required by law to have this number but want one anyway. This is because it offers them several advantages such as making financial transactions easier while operating in the country. It should be noted though that even without this ID any company can still make all financial transactions. For which they need it by contacting the relevant institutions directly.
- But in general, when you hire an independent contractor. Your business will be asked to complete a W-9 form by that contractor before payment can be made. The information collected on this form helps us determine if withholding is required and how much to withhold. It also tells us where to send the tax withheld. So your contractor can use it in reporting their income to the IRS or other appropriate authority.
- Your business must keep the completed W-9 on file. For at least four years after you pay any amount in fees or compensation. Even if you later stop working together. Aron Govil says We may also ask you to provide proof of foreign status. Before allowing you to claim exemption from backup withholding. In addition, if you are a foreign organization or entity making reportable payments. Your US payer may have to withhold tax from those payments.
Now you have learned about the Employer Identification Number or EIN. Also note that our agency does not handle taxes of any kind nor will we ever ask you to give us your EIN number as we cannot provide tax advice. Please seek legal counsel if you require further clarification of how this type of ID applies to your specific case.