Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-09-2014, 07:16 PM
Junior Member
 
Join Date: Jan 2014
Posts: 12
Foreign Individual Applying for EIN for C-Corp without SSN, Will It Make the C-Corp Unable to Do Business/Hire in the US?

I am a non-US resident currently in California on a tourism visa to start a C-Corp. I need to apply for an EIN for the company.

Here is the problem: my incorporation agent (a pretty large and well-known one) has told me that since I don't have a SSN or an ITIN, the EIN will be obtained from the IRS' international department and it will make my c-corp a "foreign entity" which will be disqualified from doing business or hiring in the US.

Is that true? This is contrary to my belief. I thought the corp incorporated in CA is always a US entity able to do business in the US regardless where the owner is.

Are there some boxes in the SS-4 form that may make that difference (so that I must avoid)? I need to hire employees in the US in the future, so I can't make any mistake on this.

Thank you.


Last edited by cyrix : 01-09-2014 at 07:25 PM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-10-2014, 12:30 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,127
Quote:
Originally Posted by cyrix View Post

#1;Here is the problem: my incorporation agent (a pretty large and well-known one) has told me that since I don't have a SSN or an ITIN, the EIN will be obtained from the IRS' international department and it will make my c-corp a "foreign entity" which will be disqualified from doing business or hiring in the US.Is that true?


#2;This is contrary to my belief. I thought the corp incorporated in CA is always a US entity able to do business in the US regardless where the owner is.Are there some boxes in the SS-4 form that may make that difference (so that I must avoid)? I need to hire employees in the US in the future, so I can't make any mistake on this.

Thank you.
#1;You must disclose the name and Taxpayer Identification Number ,i.e., SSN, ITIN to get an EIN. You can get an ITIN.However, UNLESS you are a US resident FOR TAX PURPOSES, you can’t get an SSN #.IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a SSN from the SSA; ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code. An ITIN need only be applied for when you do not already have an ITIN or a SSN; you are not being employed by USC; A TIN is an identification number used by the IRS in the administration of tax laws;tin is one of them; Social Security Number;Employer Identification Number;; Individual Taxpayer Identification Number ;Taxpayer Identification Number for Pending U.S. Adoptions ;Preparer Taxpayer Identification Number


ITINs are for federal tax reporting only, and are not intended to serve any other purpose. You should complete Form W-7 as soon as you are ready to file your federal income tax return, since you need to attach the return to your application. please contact the IRS formore info in detail.


This is contrary to my belief. I thought the corp incorporated in CA is always a US entity able to do business in the US regardless where the owner is.

#2;As mentioned abve; To hire EEs in US, you must have some type of company in the US to do so, either a subsidiary or C corp, LLC, etc. You also will have to register to do business in the state in which you have EEs.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 01-10-2014, 02:03 PM
Junior Member
 
Join Date: Jan 2014
Posts: 12
Quote:
Originally Posted by Wnhough View Post
#1;You must disclose the name and Taxpayer Identification Number ,i.e., SSN, ITIN to get an EIN. You can get an ITIN.However, UNLESS you are a US resident FOR TAX PURPOSES, you can’t get an SSN #.IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a SSN from the SSA; ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code. An ITIN need only be applied for when you do not already have an ITIN or a SSN; you are not being employed by USC; A TIN is an identification number used by the IRS in the administration of tax laws;tin is one of them; Social Security Number;Employer Identification Number;; Individual Taxpayer Identification Number ;Taxpayer Identification Number for Pending U.S. Adoptions ;Preparer Taxpayer Identification Number


ITINs are for federal tax reporting only, and are not intended to serve any other purpose. You should complete Form W-7 as soon as you are ready to file your federal income tax return, since you need to attach the return to your application. please contact the IRS formore info in detail.


This is contrary to my belief. I thought the corp incorporated in CA is always a US entity able to do business in the US regardless where the owner is.

#2;As mentioned abve; To hire EEs in US, you must have some type of company in the US to do so, either a subsidiary or C corp, LLC, etc. You also will have to register to do business in the state in which you have EEs.


I won't be able to get an ITIN until next years tax season, but EIN can be obtained now without an ITIN (The High-touch Legal Services® Blog…for Startups!Foreign Company Alert: Obtaining an EIN may be your Biggest Challenge in the U.S. » The High-touch Legal Services® Blog...for Startups!).

My concern is that getting an EIN without an ITIN/SSN will make IRS treat my c-corp different than the ones with an ITIN/SSN. My incorporation agent told me that an EIN without and ITIN will make my c-corp a "Foreign entity" which is forbidden to do business here or hire in the US, which obviously is a huge problem. Just want to know if it's true or not.

Thank you very much.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 01-10-2014, 06:56 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,127
Quote:
Originally Posted by cyrix View Post
I won't be able to get an ITIN until next years tax season, but EIN can be obtained now without an ITIN (The High-touch Legal Services® Blog…for Startups!Foreign Company Alert: Obtaining an EIN may be your Biggest Challenge in the U.S. » The High-touch Legal Services® Blog...for Startups!).

My concern is that getting an EIN without an ITIN/SSN will make IRS treat my c-corp different than the ones with an ITIN/SSN. My incorporation agent told me that an EIN without and ITIN will make my c-corp a "Foreign entity" which is forbidden to do business here or hire in the US, which obviously is a huge problem. Just want to know if it's true or not.

Thank you very much.
What a tax guys says,” QUOTE,” From my experience, the IRS does not reject the application if an SSN is not included. We simply enter “FOREIGNUS” on line 7b of the SS-4. The only issue is that the EIN cannot be applied for online because the system rejects anything that is not in a ###-##-#### format.” Also says,” Foreign companies whose officers do not have Social Security Numbers should use the telephone, rather than the IRS website, to obtain an EIN.”

I guess/recommend you absolutely need to contact an IRS agent, as said, for sure.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What are some of the provisions of the Hire Act of 2010 with respect to Foreign Account Act Compliance Act (FATCA)? TaxGuru For 2013 0 12-03-2013 12:45 AM
Foreign C Corp Help with Taxes pctech_us Miscellaneous 2 02-03-2013 03:13 PM
My S-corp client wants to hire me as W-2 employee. My options? scorpowner S-Corporation 1 10-02-2012 12:13 AM
New S-Corp. Questions about distributions and Foreign Earned Income Sean_82 S-Corporation 0 07-04-2010 07:15 AM
LLC, C corp and individual rtorbay C-Corporation 0 03-14-2010 12:00 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning