Non-US Founders: EIN, 5472, and State Choice Without an SSN

What to know

• An EIN is free by phone, fax, or mail: paid “expedited EIN” sellers control no queue.
• Single foreign owner = 5472 + pro-forma 1120 every year, even dormant.
• WY vs NM vs DE compared for privacy, speed, and banking.

Getting the EIN

The IRS online application requires an SSN or ITIN, but founders abroad can call the IRS international line (267-941-1099) and receive an EIN during the call, or fax Form SS-4 and typically get it back in about four business days. There is no fee; services charging for an “expedited EIN” file the same form.

The Form 5472 obligation

A US LLC wholly owned by one foreign person is treated as a corporation for information reporting. Every year it files a pro forma Form 1120 with Form 5472 listing transactions with its owner, including the initial capital contribution, by April 15, by fax or mail. The penalty for not filing is $25,000 per year, even if the LLC earned nothing.

Choosing a state

With no US operations, pick for cost and privacy: Wyoming ($62 a year), New Mexico ($0), or Delaware ($400, the choice if US investors are coming). US-formed companies no longer file BOI reports with FinCEN. What does matter: if you or your team work from inside the US, or the LLC has a US office, the company may have US income tax obligations beyond the information return.