Foreign-Owned US Partnership EIN Application Guide Using Form SS-4

When is a foreign-owned LLC classified as a partnership?

A U.S. LLC with two or more members defaults to partnership classification for federal tax purposes. This is the automatic classification under the IRS check-the-box regulations. No election is needed for this default to apply.

If the LLC has both foreign and domestic members, or multiple foreign members, it is still classified as a domestic partnership because it was formed in a U.S. state. The classification depends on where the entity was organized, not the nationality of its members.

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

For a multi-member LLC accepting the default partnership classification, complete Form SS-4 as follows:

Line 8a: Check "Yes" for LLC. Line 8b: Enter the number of members. Line 8c: Check "Yes" if organized in the United States. Line 9a: Check "Partnership."

The responsible party on Line 7a must still be an individual (typically a managing member), not the LLC itself. If the responsible party is a foreign person without an SSN or ITIN, enter "foreign" or "N/A" on Line 7b.

What are the submission options for foreign partners?

The same method restrictions apply as for other foreign applicants. If the responsible party has no SSN or ITIN and is located outside the U.S., they cannot use the IRS online application. Instead, they must apply by phone (267-941-1099), fax, or mail.

If one of the partners has an SSN or ITIN and is located in the U.S. or a territory, that person could serve as the responsible party and use the online application, provided the other requirements are met.

What filing obligations does a foreign-owned partnership have?

A domestic partnership files Form 1065 (U.S. Return of Partnership Income) annually. This is an information return. The partnership itself does not pay income tax. Instead, income, deductions, and credits flow through to the partners on Schedule K-1.

Foreign partners may have additional reporting obligations, including Form 8804/8805 (for withholding on foreign partners' share of effectively connected income) and potentially Form 5472 if there are reportable transactions with related foreign parties.

Can a foreign-owned partnership elect a different classification?

Yes. A multi-member LLC can elect to be classified as a corporation by filing Form 8832. If the election is made, the entity would file Form 1120 instead of Form 1065. The 60-month rule applies, preventing further classification changes for 5 years.

However, most foreign-owned multi-member LLCs maintain the default partnership classification because it provides flow-through taxation and avoids the double taxation inherent in the corporate structure.