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The Three Blockers, In Order
Almost every cross-border seller runs into the same three obstacles when trying to register for U.S. sales tax:
- You don’t have a U.S. EIN. The IRS online EIN application requires a U.S. Social Security Number or ITIN, which you almost certainly don’t have.
- You don’t have a U.S. address. Some state registration forms ask for one, and many cross-border sellers assume this means they can’t register.
- You don’t have a U.S. bank account. Most states require electronic payment (ACH) for sales tax remittance, which traditionally meant a U.S. domiciled bank account.
The good news: every one of these has a workable solution. The bad news: you have to clear them in the right order, and each one has gotchas that can cost you weeks or months if you get them wrong.
This guide walks through all three — what works, what doesn’t, and where Sales Tax Compliance USA handles it for you.
Step 1: Get a U.S. EIN as a Foreign Entity
An EIN (Employer Identification Number) is the U.S. tax identification number for businesses — analogous to a VAT registration number in the EU/UK or a tax reference number in South Africa. You need one before you can register for sales tax in any state.
The catch: the IRS online EIN application (the fast one that issues an EIN in 5 minutes) requires the responsible party to have a U.S. SSN or ITIN. If you don’t have one, the online application is closed to you. You have three other options:
Option A — Apply by phone (fastest for foreign applicants)
The IRS operates a dedicated international applicants line: +1-267-941-1099 (NOT toll-free). Hours: Monday–Friday, 6:00am–11:00pm Eastern Time.
Have your completed Form SS-4 in front of you. The IRS agent will read through it with you and issue your EIN over the phone, on the call. Allow 30–45 minutes for the call. Best time to call: 7:00am Eastern (less wait time).
Option B — Apply by fax
Fax your completed Form SS-4 to +1-304-707-9471. The IRS typically issues the EIN within 4 business days and faxes it back to the number you provide on the form.
You’ll need a fax number that can receive international faxes. Wise, eFax, FaxBurner and similar services work.
Option C — Apply by mail
Mail Form SS-4 to: Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999. Processing time: 4–6 weeks. Avoid this option unless you have nothing else.
The ‘Responsible Party’ field
The most common rejection trigger is the responsible party field on Form SS-4. This is the natural person who controls or manages the entity. For a single-member foreign LLC owned by an individual, the responsible party is that individual. The IRS asks for the responsible party’s SSN, ITIN or EIN. If the responsible party has none of these (typical for foreign founders), write ‘FOREIGN’ in that field. Do not leave it blank — that triggers automatic rejection.
Step 2: Register for Sales Tax Without a U.S. Address
This is the biggest myth in cross-border sales tax compliance. Most cross-border sellers think they need a U.S. address to register for sales tax. You don’t.
Every U.S. state with a sales tax accepts a foreign business address on the sales tax registration form. We have personally registered foreign clients in California, Texas, Florida, New York, Pennsylvania, New Jersey, Ohio, Illinois, Georgia, North Carolina and 30+ other states using a Cape Town, London, Berlin, Bangalore or Sydney address.
What states actually want is:
- Your legal business name (as it appears on your formation documents)
- Your federal EIN (from Step 1)
- Your business address — your actual address in your home country is fine
- The responsible officer’s identification — passport number is accepted in most states for foreign individuals
- Your NAICS industry classification code (the U.S. industry code that best matches your business — for ecommerce sellers this is usually 454110 or 454111)
The two exceptions worth flagging:
- Forming a U.S. LLC is a different process than registering for sales tax. Most U.S. states require a U.S. registered agent address for LLC formation (not a residential address — a service address). Companies like Northwest Registered Agent, Harbor Compliance and IncFile sell registered agent services for $100–$300 per year. But again — this is for FORMING an entity, not for registering for sales tax. You can register for sales tax as a foreign entity without ever forming a U.S. LLC.
- A few states (notably Hawaii) may ask for additional documentation from foreign sellers. The DOR usually accepts certified copies of your home-country formation documents and an apostilled passport copy.
👉 We register foreign clients in 45 states with their home-country address. Book a Free Consultation to start the registration process.
Step 3: Set Up U.S. ACH-Capable Banking
Most U.S. states require electronic payment (ACH) for sales tax remittance. Some allow credit card or wire transfer alternatives, but ACH is the cheapest and the default. Traditionally, ACH requires a U.S. domiciled bank account.
Foreign founders have several practical solutions:
Wise Business (formerly TransferWise)
Wise Business gives you U.S. routing and account numbers in your business name, even as a foreign entity. The account is technically held in trust by Wise’s U.S. partner bank. Most U.S. state DOR portals accept Wise Business as the source for ACH payments. Setup time: 1–2 weeks for foreign businesses. Annual cost: $0–$50 depending on volume.
Mercury
Mercury is a U.S. fintech specifically designed for foreign founders of U.S. companies. They require you to have a U.S. LLC (not just an EIN). Once approved, Mercury gives you full U.S. banking — checking and savings, ACH, wires, debit card, virtual cards. Setup time: 1–3 weeks. Cost: free for the standard tier.
Relay and Brex
Similar to Mercury — both are U.S. fintechs serving the international-founder market. Relay is more bookkeeping-focused; Brex skews towards venture-funded startups. Both require a U.S. LLC.
Traditional U.S. banks
Chase, Bank of America and Wells Fargo can open business accounts for foreign-owned U.S. LLCs but typically require an in-person visit by the responsible party, or video verification. Most foreign founders find this impractical.
Bottom line: if you don’t have a U.S. LLC yet, Wise Business is the fastest route. If you do have a U.S. LLC, Mercury is usually the best fit.
How Long Does All This Take?
For a foreign seller starting from zero, the typical timeline is:
- Week 1: Apply for EIN by phone (issued same day) or fax (issued within 4 business days). Open Wise Business account in parallel.
- Week 2: EIN in hand. Wise Business account active. Start state sales tax registrations (online portals are typically 5–10 business days; mail-in is 2–6 weeks).
- Week 3–4: First state sales tax certificates issued. Configure Amazon, Shopify and Walmart with your state registration numbers.
- Week 4–8: Remaining state registrations complete (depending on how many states you need). Begin first round of sales tax filings.
For a seller who’s been operating without registration for a year or more, voluntary disclosure agreements (VDAs) typically take 6–12 weeks per state but eliminate penalties and limit lookback to 3–4 years.
Or Skip All Of This
The above is the DIY route. Every step has a corresponding service that does it for you:
- EIN application: Sales Tax Compliance USA obtains your EIN by phone with the IRS, typically same-day, included in your service fee.
- State sales tax registration: We handle the application, document submission and follow-up for every state in your nexus footprint. You get the certificates emailed to you when issued.
- Banking setup: We coordinate with your Wise Business or Mercury account to ensure ACH-debit is configured for every state’s DOR portal.
- Ongoing filing and remittance: We file every monthly, quarterly and annual return on your behalf, calculate the tax due, and initiate the ACH payment from your account.
- Audit support: If a state DOR contacts you, we respond on your behalf.
One fee, end-to-end, no software for you to learn.
👉 Book a Free Consultation and we will scope your project, quote a flat fee, and start your registrations within 5 business days. We have got this.
Frequently Asked Questions
1. Do I need an ITIN before I can apply for an EIN?
No. The IRS allows you to write ‘FOREIGN’ in the responsible party’s SSN/ITIN field on Form SS-4. Many foreign founders mistakenly try to obtain an ITIN first — that adds 8–11 weeks of delay for nothing. Apply directly for the EIN by phone (267-941-1099) with ‘FOREIGN’ in that field.
2. Can I use a U.S. mailbox forwarding service (like iPostal1) as my address?
You can, but you don’t need to for sales tax registration — your home-country address works fine. A U.S. mailbox is sometimes useful for forming a U.S. LLC (registered agent address) or for opening a U.S. bank account, but not for sales tax registration itself. If you do use one, ensure it’s a real street address, not a PO Box — most state DORs reject PO Boxes.
3. Will my home-country address show up publicly on the state's website?
In most states, sales tax registration data is not public. The seller’s name, certificate number and effective date may appear on a state lookup tool (so customers can verify you’re registered), but your full address typically does not. Some states publish your registered business name and city only.
4. Can I use my personal foreign bank account for U.S. sales tax payments?
Generally no. U.S. state DOR portals require ACH payments from a U.S. routing/account number. Wise Business and similar services give you U.S. banking credentials even though the underlying account is held internationally — that’s the bridge. A pure foreign bank account (Standard Bank in SA, HSBC UK, Deutsche Bank, ICICI India) typically can’t be used directly for U.S. ACH.
5. How long does it take Sales Tax Compliance USA to get me fully set up?
For a typical cross-border FBA seller needing registration in 8–15 states: about 4–6 weeks from start to finish, including EIN issuance, banking setup coordination and all state certificates in hand. We start filings the next reporting period after registration. If you need historical voluntary disclosure work, add 6–12 weeks per state.
You Don’t Need to Move to America to Sell to Americans
The three blockers — EIN, address, banking — feel impossible from the outside. Each has a clear, well-trodden solution: phone application for the EIN, foreign address for state registration, Wise Business or Mercury for banking. The full setup takes about 4–6 weeks if you do it yourself, or 4–6 weeks with no work on your part if we do it for you.
👉 Book a Free Consultation to start the process — we will quote you a flat fee and have you fully set up within 6 weeks.
Want more on the underlying obligation? Read Do Non-US Sellers Need to Collect US Sales Tax?
