Tax id

How to Get an EIN Number to Sell on Amazon

For those of you that are wondering how to get an EIN number to sell on Amazon, please read on. The United States is often regarded as the best destination for businesses, corporations, and organizations because it furnishes numerous advantages to them. A few of the most famous and established business’s headquarters are situated in the United States like Google, Apple, Ford, etc.

Consequently, many individuals and investors based out of the US wish to setup a business in the United States of America to enjoy many benefits. However, the process is not easy. The procedures involved are complicated, but not so challenging that the task might become impossible. A person requires an E2 visa to setup and run a business.

Moreover, they are required to live in the United States for a certain time period. In order to live for the required time period, they also have to acquire tax identification numbers such as Individual Tax Identity Numbers (ITINs), Social Security Numbers (SSNs), and Employee Identification Numbers (EINs) for the purposes of tax.

Each tax ID number has a thorough application process and these numbers are compulsory for non-U.S. based principal investors as they are needed to pay taxes in accordance with the rules of the U.S. government.

The same holds true for foreigners selling on Amazon. If they wish to form an LLC in the US, they need to obtain these tax ID numbers. Amazon sellers who have an ITIN or an SSN can easily get an EIN, but those who do not have an ITIN or an SSN usually inquire how to get an EIN number to sell on Amazon.

If you need any help getting your EIN number to sell on Amazon please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

ITINs and SSNs are tax identity numbers and they comprise of 9-digit numbers used for tax purposes. On the other hand, the law of the U.S. doesn’t permit alien persons to acquire an SSN; however, they are eligible to get an ITIN. Nevertheless, ITINs are not usually regarded as valid, which is why individuals who neither have an SSN or an ITIN are worried about how to get an EIN number to sell on Amazon.

To learn more about this dilemma and answer the question how to get an EIN number to sell on Amazon’, continue reading further.

Employer Identification Number (EIN)-What is it?

To answer the query how to get an EIN number to sell on Amazon, you need to understand about an EIN. An Employer Identification Number is a 9-digit number assigned by the IRS (Internal Revenue Service) to various individuals and organizations. They are also called federal tax identification numbers. This number is assigned by the IRS to classify tax payers who need to pay tax returns on businesses.

EINs are given to sole proprietorship businesses, corporations, non-profit organizations, estates of decedents, partnerships, individuals, trusts, business entities, LLCs, and government agencies. The firms need to have an EIN to pay taxes, but before that, they need an SSN or an ITIN.

For Amazon sellers, the application process to acquire an EIN requires an ITIN or an SSN; but if they possess neither of the two, they will inquire how to get an EIN number to sell on Amazon.

EIN-Who Needs it?

Amazon sellers who are inquisitive about how to get an EIN number to sell on Amazon will also be interested in getting to know who is eligible for getting an EIN. All business owners need an EIN, despite the size of the business.

A business which pays contractors for their services an amount of more than $600 annually are eligible to receive an EIN. It doesn’t matter if your business is an LLC, corporation, or a sole proprietorship; paying greater than $600 annually, it is your responsibility to acquire an EIN.

Factors That Make Employers Eligible to Get an EIN

  • You are required to obtain an EIN if you are paying your employees $600 annually.
  • You must acquire an EIN if you are operating an LLC, sole proprietorship, partnership business or a corporation.
  • You need an EIN if you are filing tax returns for tobacco, alcohol, excise, firearms, and employment.
  • You should get an EIN when you withhold income taxes or other wages of aliens who are non-residents.
  • You need an EIN in the case of a Keogh plan.
  • You are eligible to acquire an EIN if you are involved in any of the following organizations:
    • Estates
    • Non-profit organization
    • Plan administrators
    • Farmers’ cooperatives
    • Conduits related to real estate mortgage investments
    • Trusts, excluding those which are Exempt Organization, non-grantor owned, IRAs, and paying tax returns on business income.

If you need any help getting your EIN number to sell on Amazon please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

Who is Not Eligible for an EIN?

Amazon sellers, who need an answer to the question how to get an EIN number to sell on Amazon, must be aware of the policies that make them ineligible for an EIN. Though EINs are important, they are only utilized by some businesses and not everyone is eligible for one. All employers must possess an EIN to do business; however, owning a business which is a sole proprietorship and having no employees makes you ineligible for an EIN.

What’s the Purpose of Getting an EIN?

Foreign Amazon sellers who are worried regarding the question how to get an EIN number to sell on Amazon are aware of the EIN’s purpose, but there are a few who aren’t. The purpose of getting an EIN is to deduce your financial data. Apart from the purpose of filing taxes, they require an EIN due to these reasons:

  • For opening a bank account in their business name.
  • To file a credit card application.
  • They require an EIN for business permits.
  • To hire independent contractors.
  • To reduce the risks of data theft and for privacy.

Which Entities Require an EIN?

The main purpose of an EIN is to keep a track of the wages, salaries, and other form of payments and transactions from your business to another. Sellers on Amazon who are determined to know how to get an EIN number to sell on Amazon are interested in reaping the various benefits and rewards which are related with an EIN like securing loans and opening bank accounts.

It was mentioned earlier that the requirement for an EIN are dependent on the kind of organization. The following organizations need to apply for an EIN.

1.    Corporations

Amazon sellers who are asking the question how to get an EIN number to sell on Amazon should know that all S-Corporations and C-Corporations need an EIN.

Such corporations need an EIN because they fulfill the prerequisites that make them eligible to get one. They have many employees and they pay wages greater than $600 annually.

2.    Partnership Firms

Partnership companies including limited and general partnerships need an EIN too. Limited partnerships employ 2 to 50 employees, whereas general partnerships have more than 50 employees. This makes them eligible for an EIN.

3.    Limited Liability Companies

Sellers on Amazon inquiring how to get an EIN number to sell on Amazon should know that single member LLCs can obtain an EIN by using their social SSN for the purposes of tax returns as per the requirements of the IRS.

For example, if your business has numerous members or hires multiple employees, you need to file an EIN application for the LLC. If you are establishing an LLC of any of the following kinds, you have to acquire an EIN whether or not you have an ITIN or an SSN.

  • Single member LLC with employees
  • Single member LLC with no employees
  • LLCs with more than a single member
  • LLC taxed as a corporation

If you need any help getting your EIN number to sell on Amazon please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

How to Get an EIN Without an SSN or ITIN?

Many business owners living in the U.S. are of the view that they need an SSN or ITIN to acquire an EIN. Due to rumors and misconceptions, Amazon sellers who neither have an ITIN or SSN, get worried and inquire how to get an EIN number to sell on Amazon.

Individuals who believe that it’s important to have an SSN or ITIN to obtain an EIN are wrong. Having an ITIN or SSN is not necessary, but there are 4 factors that should be noted.

  1. The corporation’s structure such as C-Corporation, S-Corporation or LLC.
  2. A person’s status; U.S. resident or a non-U.S. resident.
  3. The co-founders of the business who are U.S.-based.
  4. The association of a business with a U.S. accountant or attorney.

The factors above will help you determine whether or not an SSN or ITIN is needed for an EIN. It’s not a criterion for individuals to acquire an SSN or ITIN for an EIN. Hence, Amazon sellers who are worried about how to get an EIN number to sell on Amazon should go through the following information.

Recently, the IRS has implemented certain policies which make it quite complicated for persons to acquire an EIN. This is also true for foreign businesses, even if they possess an ITIN or SSN. To make an EIN easier for businesses without an ITIN or SSN, they need to comprehend the EIN application process.

  1. Foreign businesses require a credible US-based business lawyer with a valid SSN who can act as their third party designee to represent their business.
  1. The credible business lawyer hired by you for your business has to ready an application for an ‘Employer Identification Number’ (EIN) with the required documentation on your behalf.
  1. After preparing the application, the business lawyer must contact the IRS for international applicants and will have to send the signed form to the IRS through fax.
  1. As soon as the application will be accepted by the IRS, your business lawyer must receive the ‘Employer Identification Number’ for the foreign business on the same day, provided the name of the lawyer has been mentioned in the third party designee portion of the application form.

In short, to get an EIN without an SSN or ITIN, you must hire a professional, accredited, and credible US-based business lawyer. An experienced and certified lawyer is an integral part of the EIN application process and they help in securing an EIN efficiently and effectively.

Without a good lawyer, the EIN process might not go smoothly as they are the ones who either have an SSN or ITIN which becomes the base to obtaining an EIN for your business as they are representing you. Therefore, you should select your business lawyer properly and you should ensure they possess an SSN or ITIN.

Applying for an EIN with an SSN or ITIN

Since you are aware of how to get an EIN number to sell on Amazon, you should also be aware of the steps which are undertaken to acquire an EIN with an ITIN or SSN. Having an ITIN or SSN makes it easier to receive an EIN. For this purpose, the Form SS -4 has to be filed.

Once the application is approved, the EIN is issued by the IRS quickly. This application is applicable for principal businesses and agencies situated in the U.S.

Amazon sellers who have inquired about how to get an EIN number to sell on Amazon should be aware of the methods to acquire it. Here are the most common ways to apply for an EIN.

·      Applying Online

There is an application portal on the internet to obtain an EIN for Amazon sellers who have an SSN or ITIN. If you don’t have either, you cannot proceed with this method. After the application process is complete, the information is verified and the EIN is issued immediately.

Sellers on Amazon, who ponder over how to get an EIN number to sell on Amazon, should know that this procedure is available for offices, agencies or businesses situated in the U.S. who possess a valid ITIN or SSN.

·      Applying through Fax

Another method of applying for an EIN is through fax. Individuals who sell on Amazon trying to determine how to get an EIN number to sell on Amazon need to file Form SS – 4 and submit it to through the fax numbers mentioned on the website of the IRS, after making sure the information in the form is accurate.

As soon as the IRS approves the form, they will hand it over with the EIN in a period of 4 business days.

·      Applying via Mail

Foreigners willing to acquire an EIN may also mail the application form; however, the processing time is about 4 weeks. To avoid rejections, the form SS-4 should be completed carefully and duly signed.

·      Applying through Telephone

If you are wondering how to get an EIN number for Amazon sellers, you might do so through a telephonic call as well. You can call at the number 267 – 941 – 1099 throughout Monday till Friday, from onwards 6:00 a.m. to 11:00 p.m. This is not a toll-free number though.

Since you will be talking to a representative of the IRS, you have to ensure that the provided information according to the form SS – 4 is accurate and correct.

You have to complete the third party designee section, only if you want somebody else to collect the EIN for the business entity, for example, your accountant. For authorization, you will also have to complete the signature portion.

The Benefits of an EIN

It is essential for businesses and corporations to possess an EIN, not only to track payments and transactions, but also because there are many benefits that come with it. Furthermore, an EIN is always required; even if you don’t hire employees, you will need it for the purposes of authentication. It organizes your firm and enhances its credibility.

Amazon sellers trying to know how to get an EIN number to sell on Amazon should be aware of all the advantages associated with an EIN. Here are some more benefits you are eligible to receive with an EIN:

  • Opening a bank account for your new business is easy.
  • Applying for a local or state business license is convenient. This makes your business more trustworthy and credible.
  • Tax reports can be filed easily with an EIN.
  • EIN makes it possible to file for taxes electronically as well.
  • With an EIN, you can seamlessly and conveniently file your income, state, and other forms of taxes.

Acquiring an EIN for Amazon sellers is not a choice; rather, it’s compulsory for establishing LLCs in the United States. You mustn’t ignore it and therefore, should acquire it to form an LLC. As you are now aware of the complete process involved in how to get an EIN number to sell on Amazon, you can easily proceed further.

If you need any help getting your EIN number to sell on Amazon please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

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