Find solution
What is an ein number?

What obligations come with an EIN number for a foreign company without any employees in the US?

  • When dealing with larger companies in the US, some of our customers have required an EIN number. Do we have to report something to the US, lets say every year?

  • Answer:

    Assuming these larger companies know what they are doing that means you have USA sourced income and are liable for taxes here.  Contact a competent CPA  to discuss your situation ASAP. If your are foreign and NOT operating in the USA then no EIN is required.  By getting an EIN the IRS WILL BE looking for some sort of tax return from you.  Finally, I assume that you got the EIN before incorporating or consultimg a competent tax professional and may be stuck with the most inefficient tax organizational entity possible. CONTACT THAT CPA ASAP

Mark Rigotti at Quora Visit the source

Was this solution helpful to you?

Other answers

A2A.By itself, the EIN imposes no additional obligations on a foreign-based business entity.However, a US entity that is requesting a US tax ID number from a foreign entity does so because it has a requirement to report to the IRS. Almost always, those items involve US-source income of the foreign entity which is taxable in the US. And that, in turn, usually imposes some US tax obligation on the foreign entity. That US tax obligation may be satisfied by withholding at the source by the US entity, or it may require the foreign entity to file a US tax return.Whether or not you actually have something to report depends on the nature of your business dealings with US entities. As says, you need a qualified professional to work with you.

Mike Emeigh

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.