For UK and EU freelancers forming a US LLC, obtaining an EIN is one of the first and most important steps — it unlocks US banking, Stripe, PayPal, and the ability to operate as a proper US business entity. The EIN application process via Form SS-4 is manageable, but non-resident applicants consistently make the same avoidable mistakes. These errors range from application delays to permanent IRS record mismatches that complicate banking and tax filings for years. Here are the five most common ones.
Mistake 1: Trying to Use the IRS Online EIN Tool
The IRS offers an online EIN application that takes minutes and assigns an EIN immediately. Non-resident freelancers frequently attempt this route first — and quickly discover it requires an existing US taxpayer identification number (a Social Security Number or ITIN) to proceed. Without one, the online tool is inaccessible. Non-residents must apply by fax (to +1 855-215-1627) or by phone (+1 267-941-1099). Fax applications typically take four to five business weeks; phone applications assign the EIN immediately during the call. Attempting the online tool without a US taxpayer ID is not just a dead end — it can create a confusing application record that requires IRS clarification before your fax application is processed.
Mistake 2: Wrong Entity Classification on Form SS-4
Form SS-4 requires you to identify the legal structure of your business. For a single-member LLC owned by a non-resident, the correct classification is a disregarded entity — but this is not a simple checkbox. The form asks whether this is an LLC application (Line 8a — Yes), asks for the number of members (Line 8b — enter 1), and asks whether the LLC was organised in the US (Line 8c — Yes). Leaving these fields inconsistent or checking the wrong entity type creates a mismatch between your EIN record and your actual LLC structure, which causes problems when banks cross-reference IRS records during account opening. See our full Form SS-4 line-by-line guide for every field.
Mistake 3: Leaving Line 7b Blank or Incorrect
Line 7b asks for the responsible party's Social Security Number, ITIN, or EIN. As a non-resident without any of these, the correct approach is to write "Foreign — [your country of citizenship]" (for example: "Foreign — United Kingdom"). Do not leave this field blank. A blank Line 7b frequently causes the application to be returned by the IRS for correction, restarting the processing clock and adding weeks to your timeline. Writing "N/A" is also insufficient — the specific wording "Foreign — [country]" is what IRS processors are trained to recognise and accept.
Mistake 4: Submitting Multiple Applications
When a fax application is not confirmed within the expected timeframe, some freelancers assume it was lost and submit another one. This is a mistake. Submitting duplicate EIN applications creates conflicting records with the IRS — two or more applications for the same entity with potentially slightly different information — which can result in multiple EINs being issued, or an application being rejected because the IRS identifies a conflict. After submitting your Form SS-4 by fax, wait the full processing window (four to six weeks) before following up. If you need to follow up, call the IRS Business and Specialty Tax Line at +1 800-829-4933 rather than submitting a new application. Always save your CP 575 confirmation letter permanently once it arrives.
Mistake 5: Filing Without Understanding the Downstream Obligations
Obtaining an EIN is not the end of your US compliance obligations — it is the beginning. Many freelancers apply for an EIN, open a bank account, start receiving US payments, and then discover later that their LLC has had annual Form 5472 filing obligations since formation that they were unaware of. The $25,000 penalty per form per year for non-filing applies regardless of whether any US tax is owed, regardless of whether the LLC earned any income, and regardless of whether the non-compliance was intentional. Getting the EIN right matters — but so does understanding what comes next. See our Form 5472 guide for the annual filing requirements.
How an Enrolled Agent Prevents These Mistakes
A licensed Enrolled Agent is the professional equipped to handle EIN applications for non-resident LLC owners — not a document preparation service, not a paralegal, and not a general formation agent. An Enrolled Agent understands how the IRS processes SS-4 applications from foreign applicants, knows exactly how each field should be completed for a non-resident single-member LLC, and has unlimited IRS representation rights to resolve any issues that arise after submission. Our Enrolled Agent Richard Williams handles SS-4 preparation and submission as part of our formation service. For the full case for professional handling, see our guide on why an Enrolled Agent should apply for your EIN.
Why an Enrolled Agent Should Handle Your EIN
IRS Form SS-4 — Line by Line Guide
Form 5472 — Annual Federal Filing
View Pricing