Fast-Track Your EIN: Avoid IRS Delays for Non-U.S. LLCs

Introduction

If you are a non-U.S. resident looking to start a business in the United States, one of the key steps is obtaining an Employer Identification Number (EIN) for your LLC. An EIN, also known as a Federal Tax Identification Number, is required for various business activities, including opening a U.S. bank account, hiring employees, and fulfilling tax obligations for foreign-owned LLCs with an EIN.

Unlike U.S. residents who can apply online, non-U.S. residents must apply for an EIN through either mail or fax. This article will provide a step-by-step guide to applying for an EIN as a non-U.S. resident, explore the IRS Form SS-4 instructions for non-U.S. citizens, explain the differences between EIN vs. ITIN, and highlight common mistakes in EIN applications by non-residents.

Why Non-U.S. LLC Owners Need an EIN

Before diving into the application process, it’s important to understand why an EIN is essential for non-U.S. citizens forming an LLC in the United States:

• Opening a U.S. Bank Account – Most banks require an EIN to open a business bank account.
• Compliance with U.S. Tax Laws – An EIN is necessary for tax reporting purposes, even if your LLC does not generate revenue in the U.S.
• Hiring Employees – If your business plans to hire workers in the U.S., an EIN is required for payroll taxes.
• Building Business Credit – Establishing an EIN allows non-resident LLC owners to start building U.S. business credit.

Methods for Non-U.S. Residents to Apply for an EIN

1. Applying by Fax

For non-U.S. residents, applying for an EIN by fax is one of the fastest methods available.

Steps to Apply by Fax:

1. Complete Form SS-4 – Ensure that all required fields are correctly filled out.
2. Provide a U.S. Contact Number (if possible) – While not mandatory, it can expedite processing if the IRS needs additional information.
3. Fax the Completed Form – Send the SS-4 form to the IRS at +1-855-641-6935 (for international applicants).
4. Wait for Your EIN – If everything is correctly submitted, you should receive your EIN via fax.

Processing Time for EIN Applications by Fax:

• The IRS is currently experiencing significant delays, with processing times now taking 6-8 weeks or more.
• The delay is due to IRS understaffing and layoffs, which have significantly increased processing times.

2. Applying by Mail

The second option is applying by mail, which is slower but sometimes necessary for applicants who do not have fax access.

Steps to Apply by Mail:

1. Complete Form SS-4 – Double-check for errors to avoid delays.
2. Mail the Form to the IRS – Send your application to: Internal Revenue Service
   Attn: EIN Operation
   Cincinnati, OH 45999, USA
3. Wait for Your EIN – The IRS will process your application and mail the EIN confirmation letter.

Processing Time for EIN Applications by Mail:

• Due to IRS understaffing and mail backlog, EIN applications submitted by mail are taking longer than 8 weeks, sometimes exceeding 12 weeks.
• International mailing delays may extend the timeline even further.

Challenges in Checking EIN Application Status

1. The IRS Does Not Log Incoming EIN Applications

Unlike other government agencies, the IRS does not immediately log incoming EIN applications. This means:

• When you fax your application, it enters a queue but is not instantly recorded.
• IRS agents do not have a tracking system for pending EIN requests.

2. IRS Agents Cannot Verify the Status of EIN Applications

Because EIN applications are not logged upon receipt, IRS agents can only confirm issued EINs, not pending ones.

3. Waiting is the Only Option

Since the IRS does not provide status tracking, applicants must wait the full processing period before receiving confirmation. Given the recent processing delays, applicants should now expect to wait at least 8-12 weeks before following up.

4. Re-Faxing Can Lead to Delays

If an applicant resends their EIN application, it may result in duplicate EINs or extended processing times.

The Risk of Application Rejection and Lack of IRS Communication

One critical detail that many non-U.S. applicants overlook is that the IRS can reject EIN applications due to minor errors on Form SS-4. Unfortunately, the IRS does not always notify applicants of these rejections. In many cases:

• The IRS does not send a rejection letter, leaving applicants unaware of the issue.
• Minor mistakes (such as incorrect formatting, missing information, or minor inconsistencies) can result in rejection.
• Applicants may unknowingly wait for months, assuming their EIN is in process, when in reality, their application has already been discarded.

Why Professional Assistance Can Prevent Delays

Given the risk of rejection and the lack of IRS communication regarding application status, it is highly recommended that non-U.S. residents seek professional help when applying for an EIN. Professionals who specialize in EIN applications can:

• Ensure accuracy and prevent common mistakes on Form SS-4.
• Provide guidance on how to structure your LLC’s EIN application for compliance.
• Reduce unnecessary wait times by submitting error-free applications that are more likely to be processed quickly.

EIN vs. ITIN: What Foreign Entrepreneurs Need to Know

Many non-U.S. residents confuse EINs with Individual Taxpayer Identification Numbers (ITINs). Here’s the difference:

• EIN (Employer Identification Number) – Used for business tax identification, even if the LLC has no employees.
• ITIN (Individual Taxpayer Identification Number) – Used for personal tax purposes by individuals who do not qualify for a Social Security Number (SSN).

Non-resident LLC owners typically need an EIN but may also require an ITIN if they need to file personal U.S. taxes.

Common Mistakes in EIN Applications by Non-Residents

To ensure a smooth EIN application process, avoid these common mistakes:

• Incorrectly Filling Out Form SS-4 – Double-check all information before submitting.
• Using an Incorrect Mailing or Fax Number – Ensure you are sending your application to the right IRS office.
• Not Waiting the Full Processing Time – Calling the IRS too soon will not provide any application status updates.
• Submitting Multiple Applications – This can cause confusion and result in duplicate EINs.
• Failing to Follow Up if No EIN is Received – If you do not receive your EIN after 12 weeks, consider reapplying with professional assistance.

How to Verify EIN Issuance for International Applicants

After applying, how can non-U.S. residents verify their EIN?

• If you applied by fax, wait at least 8 weeks before checking your fax for a response.
• If you applied by mail, expect to receive a confirmation letter in 12+ weeks.
• If your EIN is needed urgently, you may try calling the IRS Business & Specialty Tax Line at +1-267-941-1099 (international applicants) after the processing period has elapsed.

Conclusion

Obtaining an EIN for an LLC as a non-U.S. resident is a critical step in forming and running a business in the United States. Since online applications are unavailable for international applicants, EINs must be obtained via fax or mail. Due to IRS understaffing and processing delays, applicants should now expect to wait 6-12 weeks or more.

Given the risk of rejection due to minor errors, and the IRS’s lack of communication regarding application status, working with a professional can ensure that your EIN application is completed accurately and processed without unnecessary delays. By following best practices and avoiding common mistakes, you can successfully secure your EIN and establish your U.S.-based business efficiently.