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The Internal Revenue Service (IRS) assigns an Employer Identification Number (EIN) to firms to identify them for tax reasons. The Federal Tax Identification Number is another name for it. EINs are used by the IRS to identify employers’ tax accounts and particular other businesses that are needed to submit different business tax returns but do not have workers. The EIN is necessary as soon as the business is started. Why Obtain an EIN number is necessary for the following situations, according to IRS guidelines:
- You have employees reporting to you.
- To run a corporation or a partnership
- If you file tax returns for Employment, Excise, Firearms, Tobacco, and Alcohol;
- You withhold taxes on income (other than wages) paid to a non-resident immigrant.
- You’ve devised a Keogh strategy;
Knowing the uses of EIN
An EIN is required for businesses to submit their tax returns and pay their employees’ salaries. Aside from that, banks, brokerage houses, and credit unions will not open bank accounts for companies without an EIN.
Obtaining EIN without SSN and ITIN
While this is conceivable, it is a time-consuming process that will eat into your billable time. USAIndiaCFO has a proven track record of obtaining an EIN for Indian business owners in three to four days, regardless of SSN or ITIN.
SSN is for citizens of the United States and approved non-citizen residents (students on F1 visas, Green Card for Indians, etc.). ITINs are required for foreign-status inhabitants such as undocumented aliens, non-resident aliens, foreign corporations, partnerships, and trusts.
SSNs are required to work, receive Social Security payments and pensions, and be eligible for other social programs, and every American has one since it acts as a national ID number for many financial and medical services. Non-residents must have an ITIN to file taxes.
EIN for Non- Citizens
If you have a Social Security Number (SSN) or an Individual Tax Identification Number (ITIN), obtain an EIN number is a breeze. However, if due diligence is not followed, it might be a nuisance for non-citizens. Almost everyone employs a lawyer after receiving an EIN to report their employment taxes, but they are unaware that they may hire a lawyer on a retainer to help them with all of their legal issues, including acquiring an EIN, for a very modest charge.
This is beneficial to them in two ways:
- the most cost-effective legal services since retainers is always more cost-effective than single tasks;
- The retained attorneys also have a deeper understanding of your firm because they were involved in creating its worldwide base, thus they can deliver work with more proficiency and accuracy.
Why USAIndiaCFO is the best choice for EIN services?
Citizens of the United States who have a Social Security number do not need to pay a third party to obtain an EIN number; instead, they can apply online at the IRS’s website using this link.
Non-citizens may face difficulties because they lack the necessary documents, such as a Social Security number or an Individual Tax Identification Number (ITIN). But that is exactly why they are here: to help our brothers and sisters achieve worldwide success and make India proud.