How to get your EIN
I've been thinking about doing a post on this for a while because I definately had to look this stuff up and found some very helpful (and some quite outdated) posts about EINs. There were also some very unclear and unhelpful ones so I thought I would try to explain this in the simplest terms possible.
What is an EIN?
If you're publishing to Amazon Kindle etc, you will be required to pay a 30% witholding tax on all your royalties. That means for every $100 you make, you lose $30. Most people are unhappy with giving so much to a foreign country but have no fear, you may be one of the lucky ones.
STEP 1: Calling America
If you're anything like me then you probably break out in a cold sweat regarding anything that involves technical, grown-up things like taxes, but have no fear because if I can do this then so can you. In order to get your EIN in the most quick and painfree manner you will have to call the IRS on +1 267 941 1099
Note: this is not a toll free number
Personally, because I didn't want to pay for a transatlantic phonecall, I used Skype. I was on the phone for roughly 15 minutes and it only cost me 24 pence. God bless the internet.
Another suggestion is to call at around 11am, UK time, which makes it about 6am, US time, and their offices will have just opened. This gives you a better chance of getting through without being put on hold. I got through in about 10 seconds which was nowhere near enough time to sort out how nauseous I felt. I really don't like talking to people on the phone.
STEP 2: Who are you and what do you want?
Once you are talking to a lovely American with a lovely American accent, they will ask you what you are calling about and you should tell them you are applying for an EIN for a foreign entitiy. If they ask about your company then say you are a sole proprieter and the business owner (which you are) and that should satisfy them.
STEP 3: Which may or may not happen.
Some say they will ask you about an SS-4 form and you should hang up and try again if this happens. Luckily for me they skipped straight to step 4.
STEP 4: Repeat everything roughly 1 million times.
This is the tedious part. They will ask your name, company name (basically the same thing unless you use a pen name like I do), where you're from, your address etc. Basically all the standard info that is hard to hear over the phone so you will have to repeat it over and over. Maybe my accent made this especially hard but I tried to use my posh phone voice, I swear.
STEP 5: Final details.
At some point, once they have all your details, they will ask you if this is about compliance from witholding tax and you will say yes. Then tell them it is for selling e-books online. They probably get these calls quite frequently nowadays.
STEP 6: Party time!
Once all of this is sorted they will give you your EIN over the phone. Read it back to them to double-check and then make sure it is written down in at least 5 safe places. Once you hang up you can use your EIN straight away for as many e-books as you want. All you have to do iS fill in the section that says EIN or TITN on the W8-BEN form which is now handily attached online to Smashwords and Amazon Kindle when you first try to publish an e-book.
BONUS STEP 7: Snailmail
About a week after you hang up on America, feeling very pleased with yourself for being such a grown-up, you will recieve confirmation of your EIN in the post. Hopefully this will have the right house number on it and come straight to your door rather than being delivered to you via your elderly neighbourswho are very confused because they're fairly certain they've never had any dealings with the IRS before.
Hummingbird (Shadow Weavers #1) is available here and here
Nightingale (Shadow Weavers #2) is available here and here
What is an EIN?
If you're publishing to Amazon Kindle etc, you will be required to pay a 30% witholding tax on all your royalties. That means for every $100 you make, you lose $30. Most people are unhappy with giving so much to a foreign country but have no fear, you may be one of the lucky ones.
STEP 1: Calling America
If you're anything like me then you probably break out in a cold sweat regarding anything that involves technical, grown-up things like taxes, but have no fear because if I can do this then so can you. In order to get your EIN in the most quick and painfree manner you will have to call the IRS on +1 267 941 1099
Note: this is not a toll free number
Personally, because I didn't want to pay for a transatlantic phonecall, I used Skype. I was on the phone for roughly 15 minutes and it only cost me 24 pence. God bless the internet.
Another suggestion is to call at around 11am, UK time, which makes it about 6am, US time, and their offices will have just opened. This gives you a better chance of getting through without being put on hold. I got through in about 10 seconds which was nowhere near enough time to sort out how nauseous I felt. I really don't like talking to people on the phone.
STEP 2: Who are you and what do you want?
Once you are talking to a lovely American with a lovely American accent, they will ask you what you are calling about and you should tell them you are applying for an EIN for a foreign entitiy. If they ask about your company then say you are a sole proprieter and the business owner (which you are) and that should satisfy them.
STEP 3: Which may or may not happen.
Some say they will ask you about an SS-4 form and you should hang up and try again if this happens. Luckily for me they skipped straight to step 4.
STEP 4: Repeat everything roughly 1 million times.
This is the tedious part. They will ask your name, company name (basically the same thing unless you use a pen name like I do), where you're from, your address etc. Basically all the standard info that is hard to hear over the phone so you will have to repeat it over and over. Maybe my accent made this especially hard but I tried to use my posh phone voice, I swear.
STEP 5: Final details.
At some point, once they have all your details, they will ask you if this is about compliance from witholding tax and you will say yes. Then tell them it is for selling e-books online. They probably get these calls quite frequently nowadays.
STEP 6: Party time!
Once all of this is sorted they will give you your EIN over the phone. Read it back to them to double-check and then make sure it is written down in at least 5 safe places. Once you hang up you can use your EIN straight away for as many e-books as you want. All you have to do iS fill in the section that says EIN or TITN on the W8-BEN form which is now handily attached online to Smashwords and Amazon Kindle when you first try to publish an e-book.
BONUS STEP 7: Snailmail
About a week after you hang up on America, feeling very pleased with yourself for being such a grown-up, you will recieve confirmation of your EIN in the post. Hopefully this will have the right house number on it and come straight to your door rather than being delivered to you via your elderly neighbourswho are very confused because they're fairly certain they've never had any dealings with the IRS before.
Hummingbird (Shadow Weavers #1) is available here and here
Nightingale (Shadow Weavers #2) is available here and here
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