"Understanding the Importance of an EIN for Your US LLC"

In Australia, when you start a business, the first thing to apply for is an ABN - Australian business number. Similarly, when you register a foreign business in the US or create a new business such as an LLC, you will need to apply for a US Taxpayer ID number for that buiness.

The EIN - Employer Identification Number - is the US equivalent of an ABN. Don't be fooled by the word 'employer'. Having an EIN does not mean that you are employing someone or that you ever will employe someone. Rather it is a term which differenciates this number from individual taxpayer identification numbers. All US Taxpayer ID numbers contain 9 digits. Once assigned to you, they will never be re-assigned to anyone else.

An EIN allows your business to operate and open a bank account.

The process to apply for an EIN for Americans who hold a SSN is quite simple. Several years ago the IRS launched the Online EIN Assistant. This free service will instantly assigned an EIN for a new business after the responsible party completes the online application.

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Sadly for foreigners (Australians) who live outside the Unites States, the application process is still 'old school'. A paper bases SS-4 form must be completed and either mailed or faxed to the Internal Revenue Service. The IRS takes between 4-10 busienss days to process theses manual applications and they will mail a CP575 notification letter to your nominated mailing address. This can take up to another month to arrive.

Gingerbread Tax can manage this manual process for you We can obtain the EIN number and 147C letter from the IRS as soon as it is assigned. This saves you about a month in waiting and will allow you to commence operating your US business sooner.

To learn more about EIN's visit our EIN Frequently Asked Questions Page.