Walmart's Requirement for a U.S. EIN
Walmart requires third-party sellers to have a U.S. business entity and a U.S. Employer Identification Number (EIN) to onboard onto their marketplace. This is a strict requirement, and without it, you cannot sell on Walmart. As a seller based in Malta, this means you must establish a U.S. business presence, even if you have no physical operations in the United States. The EIN acts as a federal tax identification number for your U.S. business, distinguishing it from your personal identity. It is essential for various U.S. business activities, including opening a U.S. bank account, which is also typically needed for marketplace sellers. For Walmart marketplace sellers in Malta, this process is a mandatory step before you can begin listing products and selling.
Walmart's policy is designed to streamline operations and ensure compliance with U.S. tax regulations for all sellers on their platform. They need a verifiable U.S. tax ID for each business entity operating on their marketplace. For sellers outside the U.S., this necessitates forming a U.S. business entity, such as a U.S. LLC, and then obtaining an EIN for that entity. The EIN is a 9-digit number issued by the Internal Revenue Service (IRS). Without this specific identifier, your application to sell on Walmart will not proceed. This applies regardless of your sales volume or the type of products you intend to sell. The process for obtaining an EIN as a non-resident involves specific steps that differ from those for U.S. residents.
When You Need an EIN as a Malta-Based Walmart Seller
You need an EIN primarily because Walmart mandates it for onboarding. This is the most immediate trigger for sellers in Malta. Beyond Walmart's specific requirements, a U.S. EIN is generally required for several other business activities. These include opening a U.S. business bank account, which is crucial for managing transactions with Walmart and other U.S.-based customers or suppliers. If you plan to hire employees within the U.S. in the future, an EIN is also necessary for payroll tax purposes. Furthermore, if your U.S. business entity is subject to U.S. federal taxes, an EIN is required to file those tax returns.
For non-U.S. residents operating a U.S. business entity, the need for an EIN is amplified. Many U.S. service providers, including banks and payment processors, will require an EIN to establish a business relationship. Even if your U.S. LLC or other entity does not have immediate U.S. tax filing obligations, obtaining an EIN is often a prerequisite for setting up the necessary financial infrastructure. The IRS Form SS-4 is the application for an EIN. While some business structures might operate without an EIN in certain limited scenarios, for a third-party marketplace like Walmart, compliance with their onboarding requirements, which include a U.S. EIN, is non-negotiable.
Required Documents for EIN Application
To apply for an EIN as a non-resident, you will need specific documentation. The primary document required is a passport of the responsible party. The responsible party is the individual who ultimately owns or controls the business entity. This is typically the primary owner or a key executive. Your passport serves as proof of identity for the person applying on behalf of the U.S. business entity.
In addition to your passport, you will need your U.S. business formation documents. If you have formed a U.S. LLC, this would include your Articles of Organization and Operating Agreement. If you have formed a U.S. C-Corporation, you would need your Articles of Incorporation. These documents establish the legal existence of your U.S. business. Finally, you need a U.S. business address. This does not necessarily mean you need a physical office in the U.S.; a mail forwarding service can often be used to satisfy this requirement for the purposes of the EIN application and for your registered agent if you form a U.S. LLC. Ensure all names and addresses on these documents are consistent, as discrepancies can cause delays or rejections.
EIN Application Process for Non-Residents
Applying for an EIN as a non-resident of the U.S. involves a different process than for U.S. residents. U.S. residents can typically apply online through the IRS portal, but this requires a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), which most non-residents do not have initially. Therefore, non-residents must apply for an EIN using IRS Form SS-4 via fax or mail. The IRS processes these applications, and you can expect a response within approximately 3–5 weeks.
When filling out Form SS-4, specific attention must be paid to certain lines. For line 7b, if the responsible party does not have an SSN or ITIN, you must write 'Foreign' in the designated field. Attempting to enter a placeholder or leaving it blank can lead to rejection. It is also critical to select the correct entity type and truthfully answer all questions regarding the business's operations. Once the IRS processes your application, they will issue your EIN. This confirmation is typically sent via fax or mail. For expedited service, you can use a Certified Acceptance Agent (CAA) who can assist in the application process, potentially reducing the turnaround time significantly.
Common Mistakes for Malta-Based Walmart Sellers
Walmart marketplace sellers from Malta often encounter specific pitfalls when applying for an EIN. A common error is attempting to use the online IRS portal for EIN applications. This portal is designed for individuals with an SSN or ITIN, and attempting to use it without one will result in failure. You must use the fax or mail method for Form SS-4. Another frequent mistake is misinterpreting line 7b on Form SS-4. If the responsible party has no U.S. Taxpayer Identification Number (SSN or ITIN), you must clearly write 'Foreign' in the space provided, not leave it blank or enter 'N/A'.
Incorrectly identifying the business entity type on Form SS-4 can also lead to issues. Ensure you select the correct structure (e.g., LLC, Corporation) that matches your U.S. business formation documents. Mismatched names between your passport, business formation documents, and the SS-4 form can cause delays. Since you are forming a U.S. entity while residing in Malta, ensure your U.S. business address is correctly documented and that you have a reliable way to receive IRS correspondence. Forgetting to include a U.S. business address or providing an invalid one is another common oversight.
The Certified Acceptance Agent (CAA) Advantage
Using a Certified Acceptance Agent (CAA) like itin.net offers a streamlined and often faster path to obtaining your EIN. As a CAA, itin.net is authorized by the IRS to verify the identity of the applicant and review the accuracy of the Form SS-4 before it is submitted to the IRS. This pre-submission review significantly reduces the likelihood of errors that could cause delays or rejection.
The primary benefit for Walmart marketplace sellers in Malta is the potential for faster processing. While the standard fax/mail application can take 3–5 weeks, applications processed through a CAA can often be completed within 3–5 business days. This speed is critical for sellers eager to start onboarding with Walmart. A CAA acts as an intermediary, ensuring that all required information is present and accurate, thereby expediting the IRS's review process. This service is particularly valuable for non-residents who may not be familiar with U.S. tax forms and procedures. The expertise of a CAA helps ensure compliance and minimizes the risk of application failure.
Next Steps After Obtaining Your EIN
Once you receive your EIN from the IRS, you can proceed with setting up your U.S. business infrastructure. The most immediate next step is typically opening a U.S. bank account. Many U.S. banks and financial technology companies require an EIN and U.S. business formation documents to open an account. Having a U.S. bank account is essential for processing payments from Walmart and managing your business finances efficiently. Services like Mercury, Relay, or Brex are popular choices for non-residents establishing U.S. banking.
With your EIN and U.S. bank account in place, you are now ready to complete the Walmart marketplace seller onboarding process. Ensure all your business details align with the information provided on your EIN application and business formation documents. If you formed a U.S. LLC, you may also have ongoing compliance requirements, such as filing Form 5472 annually if you are a foreign-owned U.S. LLC. This form reports certain transactions between the LLC and its foreign owner. For assistance with your EIN application or to understand the full scope of U.S. business requirements, consider reviewing our pricing or contacting itin.net for expert guidance.
Practical tips
- Use 'Foreign' on line 7b of Form SS-4 if the responsible party has no U.S. SSN or ITIN.
- Ensure consistency in names and addresses across your passport, business formation documents, and Form SS-4.
- For expedited EIN processing, utilize a Certified Acceptance Agent (CAA) to review and submit your application.
- Have your U.S. business formation documents (e.g., Articles of Organization for an LLC) ready before starting the EIN application.
- Understand that Walmart requires a U.S. business entity and EIN, even if your operations are entirely outside the U.S.
Frequently asked questions
Can I use my Maltese ID number instead of a U.S. EIN for Walmart?
No, Walmart specifically requires a U.S. Employer Identification Number (EIN) for all marketplace sellers. Your Maltese ID or business registration numbers are not sufficient for onboarding with Walmart.
How long does it take to get an EIN from Malta?
Applying directly via fax or mail can take 3–5 weeks. Using a Certified Acceptance Agent (CAA) like itin.net can reduce this to 3–5 business days.
Do I need to form a U.S. LLC to get an EIN?
Yes, to obtain a U.S. EIN as a non-resident for marketplace purposes like Walmart, you generally need to form a U.S. business entity, such as a U.S. LLC, first. The EIN is then assigned to that U.S. entity.
What is the difference between applying online and by fax for an EIN?
The IRS online portal is for applicants with an SSN or ITIN. Non-residents without an SSN or ITIN must apply for an EIN using IRS Form SS-4 via fax or mail.
Can I use a virtual U.S. address for my EIN application?
Yes, a virtual U.S. business address or a mail forwarding service can typically be used for the EIN application, provided it meets IRS requirements for a valid U.S. business address.
What happens after I get my EIN?
After receiving your EIN, you can proceed to open a U.S. bank account, complete your Walmart marketplace onboarding, and prepare for any U.S. tax filing obligations.
