Foreign-Owned US C Corporation EIN Application Guide Using Form SS-4

When does a foreign-owned LLC file as a C corporation?

A foreign-owned LLC files as a C corporation only if it has affirmatively elected corporate status by filing Form 8832 (Entity Classification Election). This election does not happen automatically. The LLC must submit Form 8832 to the IRS, and the election can be made effective on the date filed or retroactively up to 75 days.

Some foreign entrepreneurs choose C corporation classification for specific tax planning purposes, such as accessing tax treaty benefits or preparing for U.S. investors who prefer corporate structure.

How do you fill out Form SS-4 for a C corporation?

For an LLC that has elected (or will elect) C corporation classification:

Line 9a: Check "Corporation" and write the applicable form number. For a standard C corporation, write "1120." Line 9b: Enter the state of incorporation or organization.

All other lines are completed the same way as any other entity. The responsible party is still an individual (typically a principal officer), and the name and address must match formation documents.

Can foreign officers use the online EIN application?

No. If the responsible party (typically the principal officer) is a foreign person without an SSN or ITIN, they cannot use the IRS online system. They must apply by phone at 267-941-1099, by fax, or by mail.

If the corporation has a U.S.-based officer with an SSN or ITIN who can serve as the responsible party, that person can use the online application. But the responsible party designation carries real obligations, so do not list someone just for convenience.

What additional obligations come with C corporation classification?

A C corporation files Form 1120 (U.S. Corporation Income Tax Return) and pays corporate income tax at the federal rate of 21%. Distributions to shareholders are then taxed again as dividends, creating the well-known double taxation issue.

Foreign shareholders may be subject to a 30% withholding tax on dividends (or a reduced rate under an applicable tax treaty). The corporation must also file Form 1099-DIV and potentially Form 1042 (for foreign person withholding) to report distributions.

Should you elect C corporation status for your foreign-owned LLC?

This is a significant tax decision that should not be made lightly. The default classification (disregarded entity for single-member, partnership for multi-member) is appropriate for most foreign-owned U.S. LLCs.

C corporation classification makes sense in specific situations, such as when you need to retain earnings in the business at a lower rate, plan to seek U.S. investors, or want to access certain treaty benefits. The 60-month rule prevents you from easily switching back, so consult a tax advisor before making this election.