EIN for C-Corp without SSN, C-Corp Unable to Hire or Do Business in the US?

[Cyrix]

I am a non-US resident currently in California on a tourism visa to start a C-Corp in CA. I need to apply for an EIN for the company.

Here is the problem: my incorporation agent (a pretty large and well-known one) has told me that since I don't have a SSN or an ITIN, the EIN will be obtained from the IRS' international department and it will make my c-corp a "foreign entity" which will be disqualified from doing business or hiring in the US.

Is that true? I want to hire people in the US!!

Thank you.

 

[davew128]

I am a non-US resident currently in California on a tourism visa to start a C-Corp in CA. I need to apply for an EIN for the company.

Here is the problem: my incorporation agent (a pretty large and well-known one) has told me that since I don't have a SSN or an ITIN, the EIN will be obtained from the IRS' international department and it will make my c-corp a "foreign entity" which will be disqualified from doing business or hiring in the US.

Is that true? I want to hire people in the US!!

Thank you.

Attorneys make the worst tax advisors, especially immigration attorneys dealing with tax law as pertains to NRAs (speaking from experience). Your corp is a domestic corp. It is a foreign OWNED corp, but a domestic corp nonetheless. I don't know about the hiring aspect, but getting the EIN will take longer because of the reason described, unless you make someone else the responsible party (the attorney?) and get it online. I would otherwise get off your butt and get that ITIN asap (knowing it takes time).

 

[Cyrix]

Attorneys make the worst tax advisors, especially immigration attorneys dealing with tax law as pertains to NRAs (speaking from experience). Your corp is a domestic corp. It is a foreign OWNED corp, but a domestic corp nonetheless. I don't know about the hiring aspect, but getting the EIN will take longer because of the reason described, unless you make someone else the responsible party (the attorney?) and get it online. I would otherwise get off your butt and get that ITIN asap (knowing it takes time).

The thing is that the ITIN can't be obtained until next year's tax season, so I have to apply for the EIN without an ITIN.
It is possible to get the EIN without an ITIN through calling the IRS' international department, but I don't want to be not able to do business in the US or having a much higher tax rate at the corp level because of doing so.

 

[LdiJ]

The thing is that the ITIN can't be obtained until next year's tax season, so I have to apply for the EIN without an ITIN.
It is possible to get the EIN without an ITIN through calling the IRS' international department, but I don't want to be not able to do business in the US or having a much higher tax rate at the corp level because of doing so.

Your attorney is wrong. Find another attorney.

 

[davew128]

Your attorney is wrong. Find another attorney.

Agreed. It can't be done online but OP can either do it by mail/fax or even on the phone. That attorney should stick to immigration issues and nothing else.

 

[Cyrix]

Your attorney is wrong. Find another attorney.

Could you please clarify which part is wrong? Thanks.

 

[davew128]

Could you please clarify which part is wrong? Thanks.

The part where its a foreign entity or the part where it is such a big deal to get the EIN? Oh wait, he's wrong on both.