Federal Tax Identification Number

waht is this for? and how to obtain this legally? i'm trading in US, but i do it via my friend there, but now i dont want to disturb him anymore, i see that the Federal Tax Identification Number is important, just want to know more about it before i apply.

It is a company's tax ID number with the US Internal Revenue Service (the tax authority).

The IRS probably isn't going to give you one if that is the extent of your US business.

You need to register a compy in any US state and you'd be treated as resident alien (if you live in US) or non-resident alien if you live outside the country. Once you get a Certificate of formation for your company, you can apply for TAX ID or EIN. And then you can use it to pay taxes...

that is, can anyone tell me more about the registering company in the US

i'm not in US, my friend is, we were doing business for months, but since now, i want to make it bigger, and we should and must get the EIN, and a company, i just dont know how to register, my friend is too busy for this.

http://www.irs.gov/pub/irs-pdf/fss4.pdf?portlet=3

See page 2.

Read this page:
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

Fill-out and submit online if ya like:
https://sa1.www4.irs.gov/sa_vign/newFormSS4.do

Nice links, Lightwave. :)

As a further sidenote, you may want to go ahead and get an accountant in the U.S. to assist you on all of this to make sure that you don't miss any details.

The tax system in the U.S. can quickly become VERY complicated and while it is possible to "do it yourself" for some things, it is often times worth the investment to get a professional to assist you... sometimes they can help you avoid errors, take advantage of favorable aspects of the tax code and keep things nice, clean and simple.

On a semi-related note, is it possible to get a Federal Tax ID number if you're a sole proprietor? I'm starting another business and would really rather have a Tax ID number as opposed to giving my social security number to a bunch of distributors.

You may want to just consider incorporating. It isn't very expensive and you have some additional liability protection as long as you maintain your corporate documents. (which isn't difficult)

As a sole proprietor, you do have direct personal exposure for any actions brought against your business. You could use a company like incorporate.com or your local lawyer and setup a corporation in most cases for as little as a few hundred dollars.

On a semi-related note, is it possible to get a Federal Tax ID number if you're a sole proprietor? I'm starting another business and would really rather have a Tax ID number as opposed to giving my social security number to a bunch of distributors.

Yes... as a sole prop, you can obtain a EIN (Employer Identification Number). Use the same links Lightwave mentioned, specifically the last one is the online form.

Even if you're not intending to hire employees (which is the normal reason you'd get a EIN), it's good to have one for the very reason you noted... it keeps your SSN off a bunch of paperwork.

As a sole prop you really only need a EIN if you hire employees. Even once your incorporated most companies wont extend you credit without a personal guarentee so you still must provide your ssn in addition. If your in a business where you are not likely to be sued, then the investment and potential tax consequences for incorporating may outweigh the benefits.

hey guys, i'm back, and this is still not solved

I'm about to register a company in the US, but I dont have any itin or ssn to apply for the EIN for the company

how to get the ein then? thanks

I have found you are not asked for it unless you want to have a banking account or merchant account (maybe you're trying to do this) but they will also ask for a SSN of the company owner as well.

For company incorporation its around $100 to $300 depending on the state. Delaware is a favourite because of their taxation system.

you don't need a ssn or ein to OPEN a company. However if you get to the point where you want a bank account then you will need an EIN number. You cannot easily get an EIN number unless you have a ssn. If you have a social then you can have your EIN asap. If you don't then it takes a bit of working around to get it. and then you'll have the issues that unless you have a bank you work with, they will want you to be present to open your account. There are a couple of solutions to this though.
hope this helps :)