The EIN confirmation letter is one of the most important documents for any business in the United States. The document and the EIN itself are crucial for opening and running your own LLC or Corporation. Both domestic and international entrepreneurs can get an EIN confirmation letter, also known as a 147C letter, for free to operate in the United States.
Let’s see everything you need to know about this document, but first, let’s start with the basics.
What is EIN?
The Employer Identification Number is the corporate tax ID issued by the IRS to businesses that operate in the United States. The EIN constitutes the digits used to track business transactions in the country and to record federal taxes.
Getting an EIN for your business is mandatory to open a US corporate bank account, hire personnel, and establish commercial partnerships.
How to apply for an EIN
You can apply for an EIN by going to the IRS website and filling out the application form. The requirements for eligibility are:
- That your main business location is in the US.
- That you hold another form of US tax ID (social security number, ITIN, or another EIN).
If you’re a foreign entrepreneur and don’t have any of these US tax IDs, no worries. You can get your EIN with Globalfy.
Difference between an EIN confirmation letter and a 147C letter
The EIN approval process can take up to 2 weeks. Then, the IRS issues the EIN confirmation letter through a form called CP 575, also known as the EIN verification notice. This is a physical document delivered via mail in the US, for which overseas entrepreneurs often have trouble getting it.
Now, the CP 575 form can only be delivered once but luckily you can get a similar document, with no limit on how many times you can request it. This doc is the 147C letter, an IRS-issued record that verifies an already existing Employer Identification Number.
So, ultimately, both the CP 575 form and the 147 C letter are EIN confirmation letters provided by the IRS. The first one can be issued just one time, while the second can be requested unlimitedly.
For international entrepreneurs to be able to their CP 575 form, they need a reliable mailroom service to forward them the documentation. With Globalfy’s Virtual Address service, you get all of your official mail scanned and sent to your country. It’s not a PO box but rather a business-specialized service with thousands of satisfied customers.
How to request a 147C letter?
In case you lost or never received your original CP 575 form, or if you just want to have a backup EIN confirmation letter, you can request the 147C doc from the IRS. Call the number 1-800-829-4933 from Monday to Friday, from 7 AM to 7 PM (your local time), and kindly request the letter to the Business and Tax line of the IRS.
The document will arrive at your business address within 4 to 6 weeks. Now, if you don’t want to go through the trouble of contacting the IRS and waiting for the physical mail to arrive, you can leave the process to Globalfy’s specialized team. If you purchase Globalfy’s all-in-one business formation plan, you get your company registered in the US, your EIN and IRS confirmation letter, a US bank account, a Virtual Address in the US… and more.
Why do you need your 147C letter?
An EIN confirmation letter is vital for your business because is the document that establishes your company’s federal tax ID. You’ll be requested to provide the number when filling out taxes and payroll forms.
Most traditional banking institutions request either the 147C letter or the CP 575 form to open business bank accounts and establish credit lines. This is very important to safeguard your assets and enhance your liability protection as well.
In states like California or Arizona, you’ll need to get a special business license to operate. These permits and licenses are mandatory and will request that you submit an EIN confirmation letter to prove your company’s tax status.
Ultimately, getting your company’s 147C letter is vital to indicate your federal tax ID to other businesses and institutions, which in return is required in most corporate instances in the US. Open an LLC or a C Corporation with Globalfy and get not only your physical EIN confirmation letter but a scanned, virtual copy in your email and business portal. Strengthen your business reputation and be exposed to more opportunities in the world’s biggest economic market.