Among the self-employed and business owners who are currently in business, there are times when they need a U.S. TIN when they do business with the U.S.
TIN is..
TIN is an abbreviation for the Taxpayer Identification Number, which may require a U.S. TIN for those who need to complete the 1042-S form.
1042-S Form
TINs are usually required to apply lower tax rates through the Tax Treaty than the typical 30% tax rate, which is SSN (Social Security Administration) issued by Social Security Administration (SSA), Individual Taxpayer Identification Number (ITIN) issued by IRS, and EIN (Education Number) issued by IRS.
Today, I'll show you how to get EIN if you are running a foreign corporation outside of the U.S. If you want to get it for free, I'll give you a tip on how to get it right away. However, you should be able to speak English because you have to talk to an IRS employee in the U.S.
The Way to Obtain EIN for Free
1. Understand the basic contents of the SS-4 form.
To issue the EIN, the IRS staff asks several personal questions, checks the contents of the SS-4 form, and the EIN will be issued.
In other words, based on the above, the IRS staff will ask one by one, write it, issue the EIN, and let you know the EIN number right away on the phone.
2. Call IRS at 001-1-267-941-1099
Now, let's officially call and get EIN. First of all, I have to know when to call to get it from the U.S. because of the time difference.
Hours of Operation: Mon-Fri, 7am-10pm, Eastern Standard Time.
The staff is very kind. When I first talk on the phone, I was asked if I am Third Party Designee or Responsible Person, and if I have a personal SSN. They check my personal information and continue to ask questions about SS-4. After all the questions are over, check whether they wrote down the company name and address correctly, and let me know again if the spelling is correct. Then, they immediately let me know over the phone that the EIN has been issued along with the EIN #. You can use the EIN right away. The world can't be that fast. And they say I will receive the letter related to EIN within 2 to 4 weeks. If you speak English fluently, you will be able to get an EIN easily.
We need to know for sure and prepare thoroughly....
You don't have to know the above if you will use a third party company to get EIN #. But if you're in the early stages of the business and want to cut costs as much as possible, you have to do it yourself, right? It's a very difficult time around the world, and I hope the above information will be beneficial for many self-employed/business owners.
Among the self-employed and business owners who are currently doing business, they want to sell their company's products to the U.S. market, but the products must comply with the CPSC regulations. Or you are told that you need to get CPC certification. Today's post will be helpful for those who are facing the issue as I will take some time to find out how you can get CPC certification and export it to the U.S. market.
The Consumer Product Safety Improvement Act (CPSIA) is..
First of all, CPSIA stands for The Consumer Product Safety Improvement Act (USA), like the Ministry of Food and Drug Safety in your country. For the safety of the people (infants), certain products must pass the CPSIA test and CPC certification based on the test results to export them to the United States.
What Commodity Requires CPC Certificate?
In general, CPC issuance is essential to sell children's products under the age of 12 in the United States. Also, whether the product is produced in the U.S. or imported from abroad to the U.S., it must be CPC certified.
Cost
CPC issuance is free of charge. CPC issuance should be issued by importers or manufacturers in the United States.
In the certificate, 1) Product test & production date and place 2) Related laws 3) Laboratory Information 4) Product Description 5) Information of U.S. importers or manufacturers 6) Contact information for storage of product test results from the above companies is required.
You need to know for sure and prepare thoroughly...
Whatever happens, it's embarrassing and time consuming at first, but once you go through it, it's really nothing. It's a very difficult time around the world, and I hope the information above will be beneficial to many self-employed/business owners.
That's all for today.
Relevant Post [Please click the link below]
- [USA/Business] - Establishment of Corporation in the U.S.
If you are planning to sell your products to the U.S. market, and if you are informed that the products are subject to FDA review or need to be FDA certified, you will take time to find out how you can export to the U.S. market.
FDA is..
First of all, the FDA stands for The United States Food and Drug Administration (U.S.). Like any Ministry of Food and Drug Safety in your country, certain products must be certified by the FDA for the safety of the American people to export to the United States.
Required Information
First of all, you need the information below to export the products subject to FDA review to the United States.
1) Manufacturer (DEV), Korean exporter (DFE), and FDA registration # of the U.S. importer
2) Device Listing Number (LST)
3) Premarket (510K) #, Good Manufacturing Practices (GMP), Quality System Regulation (QSR) - If necessary, the reference here is to be renewed in one year for Registration #. If you do not renew it, it will be deleted from the FDA Medical Device Registration and Listing website.
FDA Registration
In order to register a company or product with the FDA, the information will be sent via online. For example, I'll explain it to you with a medical device. There are two procedures for registering a medical device.
1. Paying for one year's registration
2. You have to go through the registration process.
The official registration will be done by the FDA Online Account Administration (OAA).
If you go to the site, you can see the screen above and if it's your first time registering, you can register with New User as "Create New Account."
How to verify if a drug and a company is listed on FDA
If your company has received FDA registration# and listing# for the product, let's see how to verify that the FDA has been properly listed.
Then you'll see the site above, and you can search by writing your own English company on the Establishment or Trade Name here and clicking the Search button.
You need to know for sure and prepare thoroughly...
Whatever happens, it's embarrassing and time consuming at first, but once you go through it, it's really nothing. It's a very difficult time around the world, and I hope the information above will be beneficial to many self-employed/business owners.
That's all for today.
Relevant Post [Please click the link below]
- [USA/Business] - Establishment of Corporation in the U.S.
Among the self-employed and business owners who are currently doing business, some of them may have been asked to fill out W-8BEN-E while doing business with an American company. If it's not your first time, you know how and what information you need to enter, but I prepared it for those who are embarrassed when they are asked to write it for the first time.
What is W-8BEN-E??
If you look at the form, it states "Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)." In other words, "Proof of beneficiary status for U.S. tax withholding and reporting." After W-8BEN, E stands for Entity and must complete this form if it is a corporation. If you are an individual or a different type of company, you can fill out another form. If you submit this form, it will not be withheld from the United States. If you haven't submitted it, up to 30% of the tax can be paid. You must also complete this form under the Foreign Account Tax Compliance Act (FATCA) Foreign Account Tax Compliance Act (FATCA).
How to complete W-8BEN-E
Let's take a look at one by one. For general corporations, you can write Part I, Part III, Part XXV or Part XXVI and Part XXXX.
Part I
First, see the description.
Now, it's part I. Now you have to fill out all the documents in English. First, write your corporate name in English. Then, write your country in number 2 and check with the corporation if you are a corporation in number 4.
If money is coming from the United States, for example, through trade, check on "Active NFFE. Complete Part XXV." If you invest in a U.S. corporation and receive dividends, for example, check on "Passive NFFE. Complete Part XXVI."
You can fill out the address of your corporation in No. 6 and fill out the business registration number in the last 9b.
Part III
Next is Part III. Check 14 a. and write your country in the blank, check 14 b. and check "Company with item that meet active trading or business test" if it means investing in a U.S. corporation and paying dividends, for example.
Part XXV or Part XXVI
For example, if money is coming in through trade, as checked with Part I, if you invest in a U.S. corporation and receive dividends, for example, you should check only Part XXVI.
Part XXX
Finally, sign, write your name, and date today in the signature box and check "I certify that I have the capacity to sign for the entity identified on line 1 of this form."
The way you fill out the form above may vary depending on the type of business (e.g., listed company) or which country you are a citizen of.
You need to know for sure and prepare thoroughly...
Whatever happens, it's embarrassing and time consuming at first, but once you go through it, it's really nothing. It's a very difficult time around the world, and I hope the information above will be beneficial to many self-employed/business owners.
That's all for today.
Relevant Post [Please click the link below]
- [USA/Business] - Establishment of Corporation in the U.S.
Among the self-employed and business owners who are currently doing business, there are times when you need duns# when you expand your business overseas.
D-U-N-S # is..
The Dun & Bradstreet D-U-N-S# is a unique 9-digit number. In a way, you can see it as a business license number. If this is the first time a foreign company is doing business with this number, you may want to check whether the company's financial position is healthy, but you will be able to figure it out using this number.
How to Get a DUNS#?
There is also a way to get the dunce number issued through a variety of organization in your home country by paying money, but if you invest your time and do it yourself, you can get it for free.
The Way to Get a Free DUNS#
1. First, go to the site below and follow the procedure below.
3. Fill out your company information and click submit
4. Click Request a New DUNS Number
5. Fill out your company information below
6. Click "Yes, Continue" if there is no problem information you input below
7. Check one of options below.
8. Constantly check your email box
9. SAM ID
10. Create account
You must know for sure and prepare thoroughly ...
You don't have to know the above and save time if you pay for it. But if you're in the early stages of business and want to save as much as possible, you should sell your own products and do it yourself, right? This is a difficult time around the world, and I hope this information will be beneficial to many self-employed/business owners.
That's all for today..
Relevant Post [Please click the link below]
- [USA/Business] - Establishment of Corporation in the U.S.
Globalization! It's been a long time since people talked about globalization. Currently, countries are closing down due to the Covid 19, but there are still a lot of people who constantly make a lot of efforts to expand exports and somehow go abroad to target overseas markets. These days, due to the development of the platform, individuals are becoming sellers by using Amazon or eBay and are participating in export and overseas market expansion. In case of Amazon, you will need importer or IOR (Importer of Record) in the U.S. when using Amazon FBA or FBM. There is a way to use an agency, but let's find out how to set up a U.S. corporation.
Conditions of Incorporation in the U.S.
From a foreigner's point of view, I feel like there is a huge barrier to entry if you try to establish a corporation. However, the American corporation can be established by anyone, including foreigners, and there is no need to have a business in your home country. American corporations can also be established without capital.
Establishment of Corporation in Delaware
For those of you who have learned about the establishment of an American corporation, you've probably heard a lot about setting up a corporation in Delaware. Delaware has the advantage of simplifying the cost and procedure of establishing a corporation in other states.
I think the United States is a country that encourages business. For example, Tax Exception (Section 1202) has no profit tax up to US$10 million, so if you plan to set up a corporation in the United States and attract investors, I would advise you to set up a corporation in Delaware. If you're going to start and maintain your business with your own money, I'd advise you to create a corporation in the state you're going to do business in. If you do business in California, you can create a corporation in California.
Corporation Type
If you have decided to establish an American corporation, you need to decide which one to set up.
1. Sole Proprietorship
2. Partnership
3. LLC (Limited Liability Company)
4. Non-Profit Organization
5. S-Corporation & C-Corporation
In the case of Sole Proprietorship, you can think of it as a one-person company. Because there is no boundary between business and personal property, if there is a debt to the business because the business has bankrupt, you have to pay it back with your personal property. That's why the Sole Proprietorship is certainly not suitable for selling a company or attracting investment.
In the case of Partnership, as the name suggests, several people own a business. There's a type of partnership. 1) Limited Partners (LP) and 2) Limited Liability Partners (LLP). In the case of Limited Partners, one general partner has unlimited responsibilities and the remaining partners have limited responsibilities, and in the case of Limited Liability Partners, all owners have limited responsibilities.
Limited Liability Company (LLC) is a form of corporation that most individuals or small companies consider when considering establishing a corporation in the United States. Individual assets and corporate assets are separated separately so that if there is a financial problem with the corporation, the owner's personal assets will not be affected. Apart from the law, it also has the advantage of being able to defend the legal responsibility of the corporation from being passed on to the owner individual.
In the case of Non-Profit Organization, you can think of it as a non-profit foundation.
S-Corporation & C-Corporation is similar to LLC, but it would be quick to understand if you think it's usually a large corporation.
EIN (Employer Identification Number)
If sales and profits are generated after setting up a corporation in the U.S., you should pay taxes, right? What you need is an EIN number.
Branch vs Subsidiary
If you already have a corporation in your home country, you can think about whether to advance into a branch or subsidiary when you enter into the U.S. market. In other words, thinks that it is establishing a branch of your home country corporation, so from the standpoint of the United States, it is possible to think that a foreign company is doing business as a foreign company in the United States, and that the subsidiary is to understand that an independent corporation in the United States, or an American company, is established from the perspective of the United States. If you decide to enter the overseas market, you do your best, but if you look at the major market in your home country, you usually think of the branch and the main market in your business as the United States, you think of the subsidiary a lot. From a cost-effective and efficient standpoint, it is recommended to enter the United States as a subsidiary. In the case of branch, the legal responsibility can be extended to the overseas headquarters because the head office is overseas in the US position. However, because the subsidiary is considered an American corporation, legal responsibility can only end with an American corporation. In terms of tax terms, the branch does not generate a double taxation depending on how the U.S. government and your country made agreement. However, in the case of Subsidiary, the head office of your home country company and the U.S. corporation are considered separate companies, and if you want to bring the money from the U.S. to your home country, dividend tax may occur, so you may think that the branch is better than the subsidiary in terms of taxation. However, if you want to raise your home country company and American corporation separately by continuously reinvesting the profits made by independent corporations in the U.S., you can think that the branch and subsidiary are similar in terms of taxes. However, if you go further in terms of taxes, the subsidiary may be better because it is a foreign company and there are withholding, branch level interest tax, and other duties and taxes to be borne. In addition, if your home country company headquarter is subject to loaning money to the U.S. corporation instead of investing in the acquisition of shares, it can be treated as paying interest on the loan when the U.S. corporation sends money to your home country subsidiary, and it can be treated at a low tax rate if your country and the U.S. made agreement
How to Apply for an EIN Number
To receive EIN #, you can fill out Form-SS4 and apply on the IRS website below.
How much would it cost if you decided to set up LLC? First of all, the cost varies from state to state. Let's see how much it costs each week.
Alabama
State Fee: US$ 212
Alaska
State Fee: US$ 250
Arizona
State Fee: US$ 85
Arkansas
State Fee: US$ 50
California
State Fee: US$ 75
Colorado
State Fee: US$ 50
Connecticut
State Fee: US$ 120
Delaware
State Fee: US$ 110
Florida
State Fee: US$ 125
Georgia
State Fee: US$ 100
Hawaii
State Fee: US$ 50
Idaho
State Fee: US$ 100
Illinois
State Fee: US$ 154
Indiana
State Fee: US$ 98
Iowa
State Fee: US$ 50
Kansas
State Fee: US$ 160
Kentucky
State Fee: US$ 40
Louisiana
State Fee: US$ 105
Maine
State Fee: US$ 175
Maryland
State Fee: US$ 197
Massachusetts
State Fee: US$ 520
Michigan
State Fee: US$ 50
Minnesota
State Fee: US$ 155
Mississippi
State Fee: US$ 53
Missouri
State Fee: US$ 52
Montana
State Fee: US$ 70
Nebraska
State Fee: US$ 109
Nevada
State Fee: US$ 425
New Hampshire
State Fee: US$ 102
New Jersey
State Fee: US$ 130
New Mexico
State Fee: US$ 50
New York
State Fee: US$ 205
North Carolina
State Fee: US$ 127
North Dakota
State Fee: US$ 135
Ohio
State Fee: US$ 99
Oklahoma
State Fee: US$ 104
Oregon
State Fee: US$ 100
Pennsylvania
State Fee: US$ 125
Rhode Island
State Fee: US$ 156
South Carolina
State Fee: US$ 150
South Dakota
State Fee: US$ 150
Tennessee
State Fee: US$ 308
Texas
State Fee: US$ 300
Utah
State Fee: US$ 76
Vermont
State Fee: US$ 125
Virginia
State Fee: US$ 100
Washington
State Fee: US$ 200
Washington DC
State Fee: US$ 220
West Virginia
State Fee: US$ 125
Wisconsin
State Fee: US$ 130
Wyoming
State Fee: US$ 102
We must know for sure and prepare thoroughly...
It takes a lot of courage and information to start a business in your home country, but how much courage and information will it take to start a business in the United States? The more you prepare and know, the less you can spend, so I hope all the businessmen preparing to enter the U.S. will succeed.
That's all for today.
The above information and related laws are subject to change at any time, so please consult with relevant experts for further advice.
Relevant Post [Please click the link below]
- [USA/Business] - The Way to Get a Free DUNS Number
