US & Global Business
EIN (Employer Identification Number) — Meaning
The US federal tax ID for a company, obtainable by foreign owners without an SSN or ITIN.
What is EIN (Employer Identification Number)?
An EIN is the nine-digit number the IRS assigns to businesses. US LLCs and corporations need one to open bank accounts, use payment platforms, hire staff and file returns. Foreign owners without an SSN or ITIN can obtain one by submitting Form SS-4 by fax, or by phone for international applicants. The IRS confirmation letter (CP 575) is the proof banks ask for; a 147C letter verifies an existing EIN.
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More US & Global Business terms
PFIC (Passive Foreign Investment Company)
A US tax category that makes Indian mutual funds expensive for US citizens and residents to hold.
FBAR (FinCEN Form 114)
A US report of foreign financial accounts when their total exceeds USD 10,000 at any time in the year.
Form 5472
A US information return for foreign-owned single-member LLCs and corporations — $25,000 penalty if missed.
ITIN (Individual Taxpayer Identification Number)
A US tax ID for individuals who must file US taxes but aren't eligible for an SSN.
POEM (Place of Effective Management)
The test that can make a foreign company tax-resident in India if it is effectively managed from India.
