Hey there!
I hear it's time to apply for an EIN for your Delaware LLC. If you have no idea what an EIN even is, this article is for you.
What is an EIN?
The acronym stands for Employer Identification Number, and it is much like the official ID for a business.
In the US, EINs are assigned by the Internal Revenue Service (IRS) as a company's unique identifying number. You can think of it as their equivalent of a CNPJ.
EINs are used for tax reporting, and are required to open business bank accounts in the US.
All EINs have nine digits, formatted as XX-XXXXXXX.
Why do I need an EIN?
You're incorporating internationally for a reason: to raise capital. That means you'll need corporate bank accounts to move money around.
In order to be able to offer them for you, banks will need your company's EINs to make sure your business is legit. It's a hard requirement for all US-based banks (think Silicon Valley Bank, Mercury, etc).
How do I get an EIN?
The good news is that obtaining EINs for your international legal entities is part of the Latitud Formation incorporation package. You won't have to worry about this piece of the puzzle.
But if you're anything like us, you're still curious about the process. Here's a simplified breakdown:
- Applying for an EIN is free and done through a filing called an SS4 form
- Foreign individuals and entities need to apply via fax or physical mail
- It's up to the IRS to approve the application and issue the number
- It typically takes around 20 days for an EIN to be issued
Some important things to note:
The IRS is remarkably known for its delays, especially after the pandemic. These last two years built up a HUGE backlog of EINs to be issued, so things are slower than usual.
Applying for your EINs is the easy part. We also follow up consistently to ensure things are moving, and we'll keep you in the loop on any progress. Ultimately, it's in the hands of the IRS to make it happen.
You'll be the first to know if there are any updates in the process.
Have any questions?
Reach out to us via WhatsApp or email at formation@latitud.com and we'll be happy to help.