get ein without ssn

Get EIN Number Without (SSN) Social Security Number

It wouldn’t be wrong to call the United States of America as a golden state for corporations and businesses as it offers a myriad benefits to all those who seek it. The statement is further proven by the fact that a number of world-class corporations, such as Apple Inc. Google and Amazon, have their headquarters set right in the heart of it. It is due to the same reason that many other businesses and corporations, both large and small, wish to establish and grow their businesses in this golden state and reap the advantages it has to harvest. But unfortunately, as bright as the future may seem, the process to establish a business here is not as easy. For starters, an individual needs to obtain an E2 visa to lay down his/her business plan before actually building one.

If you need help getting an EIN number without a Social Security Number (SSN), please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

Even though most owners don’t need to reside in the US to conduct their business’ operations, they are still required to obtain a Social Security Number (SSN), an Employee Identification number (EIN), or the Individual Taxpayer Identification Number (ITIN) to file for and pay tax returns. There is different detailed application process for each to obtain these numbers.

People who already have an SSN or ITIN don’t find it difficult to obtain an EIN for their business purposes. For this reason, we will be looking at means to allow them to obtain one in this blog.

Understanding what a Social Security Number (SSN) is

Before we go into understanding the complexities involved in trying to get EIN number without SSN, one must understand what a SSN really is. A Social Security Number, or SSN as it is normally referred to as, is a 9-digit code that functions as an individual’s tax identification number. It isn’t issued to everyone; only to those who are a permanent resident of the United States of America or a temporary alien residing in the states and are employed or run a business.

Understanding an Employer Identification Number (EIN)?

Coming to a much more important term, an Employee Identification Number (EIN) is again a 9-digit number, like a SSN, issued to companies by the IRS. It is also known as the federal tax identification number issued to companies and firms that wish to file their business’ tax returns annually.

The EIN numbers are usually issued to:

  • Sole proprietorship
  • Corporations
  • Non-profit organizations
  • Estates do decedents
  • Government agencies
  • Certain individuals
  • Trust
  • And many other business entities

In many cases, if you wish to obtain an EIN for whatever form of business you are involved in, you are required to present your SSN or ITIN number to the IRS. That is how a routine application for an EIN is processed. But, what about those individuals who don’t have a SSN or ITIN? Can’t they apply for an EIN by the IRS?

They can!

However, since most people don’t know how to get EIN number without SSN, in the blog piece, we will help all such individuals by answering that question. The detail of the procedure has been mentioned below.

Who Needs an EIN Number?

If you are reading this blog to determine the ways to get EIN number without SSN, it is best if you understand who needs to have one. No matter how big or small a corporation they run, all employers need to get EIN number without SSN or ITIN. Moreover, it doesn’t matter if the employees appointed at the corporation are working full-time or part-time. If the company has employees working under it, the employer needs to get an EIN.

A company that has been paying independent contractors for services that cost up to $600 per year also needs to obtain an EIN. It doesn’t matter whether you are company is a sole proprietorship, partnership, or runs as a corporation; if you are paying independent contractors more than $600 annually for their services, as an employer, you are bound to get an EIN with or without a SNN or ITIN.

What is the Purpose of Obtaining an EIN Number?

All those individuals who are seeking an answer regarding how to get EIN number without SSN or ITIN must first understand the purpose of obtaining an EIN. Most people already know this but if you are one so those who don’t know, the sole objective of getting an EIN number is to tell apart your personal finances from your business-related expenses. This allows for easier calculation of costs that are taxable and those on whom taxes aren’t liable. Once that calculation is made, it becomes easier for companies to file for taxes at the end of one year. But that is not the only reason why so many employers are eager to get EIN number without SSN. What are those other reasons for which they need to get EIN number without SSN? Here is a list to help you out:

  • You will need to get an EIN if you want to open a new bank account in your business’ name.
  • You will need to get an EIN if you apply for a credit card for your business.
  • You will need to get an EIN if you wish to obtain any business permits.
  • You will need to get an EIN if you need to pay/furnish independent contractors.
  • You will need to get an EIN if you wish to obtain one for privacy and lessen the chances of theft.

Am I Eligible To Obtain An EIN Number?

Not everyone needs to get EIN number without SNN and not everyone is eligible to get EIN number without SSN. So, what are the factors that determine if a taxpayer is eligible to get EIN number with or without SSN. Presented below are the conditions;

  1. You will be eligible to get an EIN if you are paying your employees up to $600 annually.
  2. You will be eligible to get an EIN in case you are operating a sole proprietorship, partnership business, or a corporation.
  3. You will be eligible to get an EIN if your business files tax returns on tobacco, alcohol, firearms, employment, or excise.
  4. You will be eligible to get an EIN if you withhold taxes on income other than wages paid to non-resident aliens.
  5. You will be eligible to get an EIN if you have a Keogh plan.
  6. You will be eligible to get an EIN if you are involved in any one or more of these organization types:
  • Estates
  • Plan administrators
  • Non-profit organization
  • Real estate mortgage investment conduits
  • Farmers’ cooperatives
  • Trusts but not trusts which are not grantor-owned revocable, exempting IRAs and Organization Business Income Tax Returns

Owners or Executors Who Don’t Need an EIN Number

All those who are seeking the answer of how to get EIN number without SSN must know that not everyone needs to have one. Yes, there are many taxpayers who don’t need to get EIN number without SSN. It is true that an EIN number is particularly essential for all companies to have as it makes tax filing and paying taxes easier, but it isn’t required by all companies or corporations, and neither are all companies and corporations eligible for it. An EIN helps in differentiating your financial data from your personal finances. All employers need to get EIN number with or without SSN or an ITIN if they are running a corporation that has employees working under them. However, if you run a sole proprietorship, there is no need to get EIN number without SSN or ITIN. The law and IRS cannot stop the functioning of your business.

Types of Entities that Require EIN Number

The most important reason why people are eager to get EIN number without SSN or ITIN is because it helps in better tracking of payments and wages of the business from the owner’s end. All those who are looking for ways to get EIN number without SSN are doing so because they wish to enjoy the perks that come associated with an EIN. These include opening a new bank account, obtaining a credit and for business purposes, and so on and so forth.

As mentioned several times above, the decision to get EIN number without SSN solely depends on the type of business you are running. Under this heading, we will take a closer look at the different types of business entities that require an EIN to function.

Partnership Firms:

The first type of business entity is a partnership firm. It includes both general partnerships and limited partnership that require an EIN to function. A limited partnership has a workforce of as little as 2 employees and as many as 50 employees. However, if the number of employees surpasses 50, it becomes a general partnership firm. With so many people on board, it becomes essential for companies to keep a clear record of all the taxes filed. This is why getting an EIN for such big partnership firms become pivotal.

Corporations:

All those people who are trying to understand the different ways to get EIN number without SSN must understand the concept of a corporation is if they don’t already. There are different types of corporations including C and S corporations that need to obtain an EIN. Why do they need to get EIN? They need to because they have to fulfill all the requirements that make a business eligible for an EIN. Both these corporations have a number of employees working under them and the business pays them up to $600 in a calendar year.

Limited Liability Companies (LLC):

People asking as to how to get EIN number without SSN must know that limited liability companies can obtain an EIN by only using their social security number for IRS purposes.

Whether or not you have a SSN or an ITIN, if you are forming a LLC of any of these types, you will have to get an EIN number.

  • Single-member LLC with employees
  • Single-member LLC with no employees
  • LLC taxed as a corporation
  • Multiple members LLC

The Complete Process of How to get EIN number without SSN

Many people residing in the United States of America believe that in order to establish their businesses and get an EIN number, they need to have a SSN or an ITIN. This is not true. Those who don’t have a SSN or an ITIN can also establish and expand their businesses in the US and can obtain an EIN. Due to this lack of common knowledge, many people never apply for an EIN all their lives as they believe that they can’t obtain one without having a SSN or an ITIN. People who think so are mistaken. Yes, it is ideal to have a SSN or an ITIN number when getting an EIN but it is not an essential condition.

When it comes to EIN numbers, there are 4 things any individual should keep in mind:

  1. What type and structure does the corporation have? Is it an S, C, or Limited Liability Company?
  2. The residency status of the individual applying for an EIN. Are they a resident of the United States of America or not?
  3. The US co-founders of the business.
  4. Whether you business is associated with and working with a US-based accountant or tax attorney.

Once you have determined these four factors, you will be better able to understand if you need to have an EIN for your estate, LLC, or trust or not. Not only that, it will also help you determine if you need to have an SSN or ITIN to apply for an EIN.

In recent times, the IRS has made the process of obtaining an EIN for offshore companies operating in the US quite difficult, even if they already have a SSN or ITIN. To make it easier for such offshore companies to easily obtain an EIN, they need to review the following basics of the application process.

Presented below is a 4-step guide that every individual seeking an answer regarding how to get EIN number without SSN must read to learn how to do so.

Step # 1: Credible Business Representative

in order to successfully get EIN number without SSN, foreign investors and offshore companies wishing to operate here in the US need to have a credible and loyal tax accountant who can represent them as their ‘third-party designee’. He/she will then become answerable to the IRS for any business-related inquiry.

Step # 2: Application Preparation

The next step involves preparing your application for getting an EIN. It will be your accountant’s job to gather and assemble all the required documentation needed to be presented with the form to obtain an EIN.

Step # 3: Get in Touch with the IRS

Once the application has been prepared by the accountant for the EIN issuance, they will be contacted by the IRS and will be questioned about the foreign investors (in this case: you). Once the questioning from their end has been deemed satisfactory, the accountant will be asked to fax the signed form to the IRs office.

Step # 4: Getting EIN Number

If the IRS finds that the application you submitted has genuine information, it will deem your business fit to obtain an EIN. Your accountant will have to collect the EIN on your behalf as he/she was listed as the third-party designee in the EIN form.

This is how you can get EIN number without SSN. Before rejoicing in your success, it is important that you know what kind of business structure works best for you. You can also seek assistance from your business accountant in this regard who will be better able to guide you on the different business structures and which one will work in your favor.

Other Benefits of Obtaining an EIN Number

There are many other perks of obtaining an EIN number other than just for business-related tax filing. We are listing down a few to help you visualize the importance of getting an EIN if you don’t already have one.

  • You can even have a new bank account opened as an identifier for your business.
  • You can apply for a business license for both locally or in another state using that EIN which as a result, will make it more credible.
  • You can even file tax reports using your EIN.
  • You can also file your taxes electronically with the help of your EIN.
  • Lastly, you can seamlessly file your income, state, and any other taxes using your EIN.

If you need help getting an EIN number without a Social Security Number (SSN), please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

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