There are many steps that you need to take when trying to set up a business in the United States if you are operating out of a foreign country. Perhaps you already run the business in your home country and you’re looking to expand into the United States, or maybe you’ve identified a niche market in the United States and you want to try to make the most of it. You’ll need to do everything from registering your business to getting the proper trademarks and patents to choosing a company name and a company structure.
One other step that you’ll need to take is to get an Employer Identification Number, which is commonly referred to as an EIN. Why do you need this number when you are setting up your business?
Hiring your workforce
For one thing, you need to have an EIN so that you can hire the workers who are actually going to physically operate at your company. They will need to know this number when filing their own taxes, so it is essential for payroll purposes and things of this nature. You can’t open the company without an EIN because you cannot have employees prior to this point.
Getting a business license
You will also need an EIN to get a business license, in many cases. Even when you know that the license is going to be approved, you still have to take all of the proper steps to identify yourself to the local government, and you’ll need to use this number while establishing your business as an entity. Never attempt to run a business without the proper license.
Taking financial steps
Your EIN can also be used when you’re taking various financial steps along the way. For instance, you can use it to pay taxes to the IRS, just as your employees may need to use the number when paying their own taxes. You can also use the EIN when you’re opening up a bank account if you’re planning to hold funds in the United States.
Don’t miss any important steps
One of the most important things to do when establishing a business in the United States is to make sure that you check every single box and take every single step that the government requires. There are strict regulations, and an EIN is just one example. Be sure you know about all of your obligations and how to get everything in place so that your business can be successful.