Hi, I wonder if anybody here can help me understand how a foreign entity (especially company) should communicate with IRS in case if this entity gets any money from USA based company.
As I believe there are many options, but basically foreigner (individual or company) needs EIN (Employer Identification number) in case for withholding taxes.
So here it is:
1. Individual with EIN (every freelancer can qualify)
2. Individual without EIN
3. Company with EIN
4. Company without EIN
In all cases foreigner from a country with a treaty to avoid double taxation.
Who (1., 2., 3., 4.) should file any kind of papers to IRS? Cases 3 and 4 are particularly interesting to me.