Every US LLC that buys and finances investment property needs an EIN, its federal tax identification number. Foreign investors are often told they need a Social Security number first. They do not. The IRS issues EINs to companies owned by non-US persons as a matter of routine; the process is simply not the online one most US guides describe.
This page summarizes the IRS instructions for Form SS-4 as they stand today. Check irs.gov before you apply, since contact details occasionally change.
Who needs the EIN
The LLC does. A single-member LLC owned by a foreign person needs one even though it is disregarded for income tax, because it must file Form 5472 each year. The SS-4 instructions tell such an entity to check 'Other' on line 9a and write 'Foreign-owned U.S. disregarded entity-Form 5472'. The lender, the title company and the bank all ask for the EIN, and the bank account cannot be opened without it.
Filling in Form SS-4 without an SSN
- Line 1: the LLC's exact legal name, as on its formation documents
- Line 7a and 7b: the responsible party, the person who ultimately owns or controls the LLC. If that person has no SSN or ITIN and is not eligible for one, enter 'Foreign' or N/A on line 7b
- Lines 8a to 8c: confirm it is an LLC and give the number of members
- Line 9a: the entity type; a foreign-owned single-member LLC checks 'Other' with the Form 5472 wording above
- Third-party designee: you can authorize a US adviser or formation agent to receive the EIN on the LLC's behalf
Three ways to apply, and how long each takes
The online application is not available if you have no legal residence, principal place of business or principal office in the United States.
- Phone: 267-941-1099 (not toll-free), 6:00 a.m. to 11:00 p.m. Eastern time, Monday to Friday. Only international applicants can obtain an EIN by phone, and the caller must be authorized to receive it
- Fax: 304-707-9471 from outside the US, or 855-215-1627 from within the US. The IRS generally faxes the EIN back within 4 business days
- Mail: Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999. Expect about 4 weeks
Why the EIN sets the pace of your purchase
The order is fixed: form the LLC, obtain the EIN, open the LLC's US bank account, fund it, then close. A delay on the EIN pushes everything after it. The financing is quick by comparison, with a term sheet in 24 to 48 hours and closing in about two weeks on a clean file, so the EIN application should go in the same week you form the LLC, ideally before you sign a purchase contract.
EIN, ITIN and SSN: not the same thing
The EIN identifies the company. An ITIN identifies an individual who has a US tax filing obligation but is not eligible for an SSN. You do not need an ITIN to get the LLC's EIN or to borrow through the LLC, but you may need one later, for example to file a personal US return after a sale and claim a credit for FIRPTA withholding. Ask your US tax adviser when to apply.
Borrowing once the EIN is issued
With the LLC, its EIN and a funded bank account in place, a foreign investor borrows on the same terms as a US investor, with no US credit history: bridge up to 80% LTV, fix and flip and renovation up to 90% LTC, construction up to 85% LTC and DSCR up to 80% LTV, from $1M to $5M.