International Author/ITIN or EIN/NOT self-publishing

nashsummers · Feb 6, 2014

Hi guys!

After a lot of frustrating looking around the internet, I've decided to just come out and ask my question and hope for a reply. Most of the posts on the internet on this subject seem to be for people who are self-publishing.

I'm an international author (Canada) and recently have had two short stories contracted by two separate publishers. The first publisher asked for my ITIN and the second hasn't heard of an ITIN because they are very small.

My question is: am I able to get an EIN instead of an ITIN by claiming myself as a business if I plan to work with publishers and not self-publish?

Thanks in advance for the help!

MaryMumsy · Feb 7, 2014

I should be positive about this, but I'll go with the gut feeling. The EIN is only for those businesses that have employees. The ITIN is the US government's version of a social security number for those of you who are not US residents. Without regard to the size or number of publishers you are working with, for US publishers you would need the ITIN.

ETA: US authors use their SSN for their 'business' of being an author. Unless they are huge like Stephen King or Nora Roberts and have incorporated themselves.

MM

veinglory · Feb 7, 2014

For US publications I would just write 'foreign national' in that space.

Parametric · Feb 7, 2014

MaryMumsy said:
I should be positive about this, but I'll go with the gut feeling. The EIN is only for those businesses that have employees. The ITIN is the US government's version of a social security number for those of you who are not US residents. Without regard to the size or number of publishers you are working with, for US publishers you would need the ITIN.

No, you don't need employees to get an EIN. The EIN covers sole proprietors, which I gather is the US equivalent of the UK sole trader, a one-person business. I got a US EIN as a UK sole trader and they never asked me for any employees.

nashsummers · Feb 7, 2014

Thanks for the replies, guys, it really does help.
I've done a lot of research on the subject and I guess what I've found out is that a lot of self-published authors who are international are getting EINs and using them claiming themselves to be businesses.
Apparently this method works if you're selling your books through Amazon, Smashwords, etc.
The only problem I was having was wondering if it would work the same way because I'm going through publishers, not self-publishing.
Without applying for either, the IRS could take an additional 30% of my royalties! (yikes!)

nashsummers · Feb 7, 2014

Parametric said:
No, you don't need employees to get an EIN. The EIN covers sole proprietors, which I gather is the US equivalent of the UK sole trader, a one-person business. I got a US EIN as a UK sole trader and they never asked me for any employees.

Thanks for the reply!
Would I be able to ask if you've ever worked with any publishers and used your EIN when filling out an W-8BEN form for tax purposes?
(I really hope so because an EIN sounds much less difficult to get than an ITIN)

Parametric · Feb 7, 2014

nashsummers said:
I've done a lot of research on the subject and I guess what I've found out is that a lot of self-published authors who are international are getting EINs and using them claiming themselves to be businesses.

I know you didn't mean this in a harsh way

but as a self-published writer, I'm not claiming to be a business - I am a business. I'm a registered self-employed, tax-paying UK sole trader in good standing. I do my own business accounts and file my own tax returns. And if you're making income from your writing, you are also a business.

nashsummers said:
Thanks for the reply!
Would I be able to ask if you've ever worked with any publishers and used your EIN when filling out an W-8BEN form for tax purposes?
(I really hope so because an EIN sounds much less difficult to get than an ITIN)

I'm a self-publisher, so I haven't worked with any publishers, but I use my EIN on all W8-BEN forms to ensure that royalties aren't withheld. An EIN is amazingly easy to get - I phoned the IRS and it was all sorted in ten minutes. Unfortunately, if your publishers don't know what an EIN is, that may be a sticking point.

nashsummers · Feb 7, 2014

Oh no! I'm so sorry if that sounded rude. I promise I didn't mean it like that at all and I'm glad you didn't take it that way.

I'm going to have to revisit asking my publishers about this issue.
Thanks for the information!

Parametric · Feb 7, 2014

No worries!

I'm hoping you can get your publishers to accept an EIN - it works just fine for all my royalty needs.

shaldna · Feb 10, 2014

Out of curiosity, is the percentage of tax payable for businesses in your country higher or lower than the percentage you would pay in income tax and an individual rather than as a company.

That's always something to think about.

International Author/ITIN or EIN/NOT self-publishing

nashsummers

M/M Romance Author

MaryMumsy

the original blond bombshell

veinglory

volitare nequeo

Parametric

nashsummers

M/M Romance Author

nashsummers

M/M Romance Author

Parametric

nashsummers

M/M Romance Author

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shaldna

The cake is a lie. But still cake.