EIN for Ukrainian LLC Owners: The 2 Million Euro Rule That Exempts Most Founders' CFC Profit

Three things before you apply. First, your LLC needs state approval -- applying before formation is complete is a common, avoidable delay. Second, keep your Ukrainian passport or ID card accessible in case the IRS requests identity verification during a fax or phone follow-up. Third, settle on a mailing address for the CP 575 confirmation letter -- a Ukrainian home address works, though many founders use a US virtual mailbox for faster, trackable delivery. Worth preparing early: a certified copy of the LLC's financial statements for each reporting year, since Ukraine's CFC reporting requirement calls for this documentation regardless of whether the profit itself ends up taxable.

The application process itself does not vary by country. Ukrainian founders use the same three non-resident routes as everyone else, since the IRS's online EIN system requires an SSN, ITIN, or US legal residence most applicants do not have. Fax is the most reliable method: complete Form SS-4 and send it to 855-215-1627 if faxing from within the US, or 304-707-9471 from outside -- i.e., from Ukraine -- with real-world turnaround commonly running one to two weeks despite the IRS's official four-business-day target. Phone, at 267-941-1099, is open to international applicants Monday through Friday, 6:00 AM to 11:00 PM US Eastern Time; Ukraine runs seven to eight hours ahead of Eastern depending on the season, leaving a workable calling window in Ukrainian afternoon and evening. Mail, at four to five weeks, is the slowest option and rarely worth choosing over fax.

A few fields on Form SS-4 consistently cause delays for non-resident applicants generally, Ukrainian founders included. Line 7b asks for the responsible party's SSN, ITIN, or EIN -- if you have none of these, the IRS's own instructions say to write Foreign or N/A, not leave the field blank, since a blank Line 7b is one of the most common reasons non-resident applications bounce back for correction. Lines 4a-4b need your full Ukrainian mailing address spelled out with Ukraine written in full, since that is where your EIN confirmation letter, Form CP 575, will be mailed if you apply by post. Line 9a asks about entity classification -- accepting the default disregarded-entity status is standard for most single-member LLCs and does not affect how Ukraine's CFC rules classify the LLC, since that classification depends on your ownership and control of the entity, not the US tax election.

Once issued, your EIN arrives with a confirmation letter, Form CP 575, sent by fax, mail, or both depending on your application method -- keep it permanently, since banks and payment processors will ask for it during account opening. A lost CP 575 cannot be reissued, but the IRS will provide an EIN Verification Letter, Form 147C, as a substitute for any future banking or tax need. From here, most Ukrainian founders move on to arranging US-side payment infrastructure -- Mercury and Relay are not currently available to founders based in Ukraine, so Payoneer is the commonly used route for receiving international payments, and it is worth confirming current eligibility directly rather than assuming it based on older information. Since almost every non-resident-owned single-member LLC counts as a foreign-owned disregarded entity, you will also need to file Form 5472 alongside a pro forma Form 1120 annually, regardless of whether the LLC had US activity that year. The $25,000 minimum penalty for missing that filing is a separate obligation to the IRS, independent of Ukraine's CFC notification and reporting requirements.

If a formation service is handling your EIN application, confirm that the responsible party listed on Line 7a is you, the actual owner -- not a staff member at the formation company. The IRS defines the responsible party as whoever ultimately owns or controls the entity's funds and decisions, identified by their real name and passport-based nationality. An EIN record that lists someone other than the actual owner creates a mismatch that can complicate matters later if a bank or payment processor needs to verify beneficial ownership, which is the same information reported separately under BOI/FinCEN rules. If a provider suggests listing anyone but you, treat it as a red flag rather than a convenience, regardless of how routine it sounds.

Ukraine introduced Controlled Foreign Company rules under Article 39-2 of the Tax Code, effective January 1, 2022. A Ukrainian resident who owns 10% or more of a foreign company -- provided Ukrainian residents collectively hold 50% or more -- or who exercises de facto control regardless of formal ownership, generally must include their share of that company's profit in their personal taxable income, at 18% in most cases. For most founders reading this page, though, there is meaningful relief built into the law: a CFC's profit is exempt from this tax entirely if the total profit of all controlled foreign companies held by that person does not exceed 2 million euros in a given year. A single-member US LLC run by a solo founder -- a SaaS product, an e-commerce store, a consulting practice -- sits comfortably under that threshold in the overwhelming majority of cases, which means the profit itself generally is not subject to Ukrainian tax at all. This exemption is specific and important to understand precisely: it exempts the profit from taxation, not the underlying obligation to notify and report the CFC to Ukrainian tax authorities, which remains mandatory regardless of whether any tax is ultimately due -- covered in the next section. None of this changes what Form SS-4 asks for -- the IRS has no interest in Ukraine's CFC thresholds -- but it does mean most founders in this series' target profile face a lighter tax outcome in Ukraine than the accrual-based regimes covered for several other countries.

For a founder whose LLC grows beyond the 2-million-euro exemption, or who otherwise finds CFC profit becoming taxable, one detail is worth planning around: the tax rate depends on timing. If the controlling individual actually receives the distributed funds -- directly or through a chain of ownership -- before submitting the annual CFC report, the applicable rate is 9% rather than the standard 18%. A retroactive correction and partial refund is even available if the distribution and an adjusting return happen before the end of the second calendar year following the reporting year. This is a narrower point than the exemption above, relevant mainly to founders whose LLCs have scaled past the point where the profit threshold protects them entirely, but it is a meaningful lever once that threshold is crossed.

A few mistakes show up repeatedly. Assuming the 2-million-euro profit exemption also excuses the CFC notification and annual reporting requirements, when those obligations remain mandatory regardless of whether any tax is due. Treating the Verkhovna Rada's 2024 suspension of certain CFC penalties as a suspension of the entire regime, when the underlying filing obligations continue and enforcement is expected to intensify through 2026. Missing the 60-day window to notify tax authorities after acquiring control over the LLC, since that clock starts running from the acquisition itself, not from when the founder gets around to it. Assuming current NBU currency-transfer rules are the same as they were when the founder last checked, when the specifics have shifted more than once since 2022. And, as with every non-resident applicant regardless of country, leaving Line 7b of Form SS-4 blank instead of writing Foreign, which remains one of the most frequent reasons the IRS returns a non-resident application for correction.

The National Bank of Ukraine has maintained foreign exchange and capital control measures since February 2022, affecting outward currency transactions from Ukraine, including funds sent abroad to fund a foreign business. These measures have been adjusted multiple times as circumstances have evolved, and the specific limits, permitted purposes, and documentation requirements in effect at any given moment depend on the current NBU resolution rather than any fixed rule. None of this affects the EIN application process itself, but it directly affects how and when a Ukraine-based founder can move funds to their new LLC's US bank account, and it is worth checking the NBU's current published requirements immediately before making a transfer rather than relying on information that may be out of date.

The 2-million-euro exemption covers taxation, not disclosure, and treating the two as the same thing is one of the most common and costly mistakes founders make. A notification to Ukraine's tax authorities is required within 60 days of acquiring control over a foreign company, and an annual CFC report -- covering income, ownership, and financial details -- is due alongside the controlling person's annual tax return, generally by May 1 of the following year. This applies even when the CFC's profit is fully exempt from tax under the threshold above. Penalties for missing these filings are calculated as multiples of Ukraine's statutory subsistence minimum and can run into the millions of hryvnia in serious cases. The Verkhovna Rada suspended enforcement of certain CFC penalties during martial law in May 2024, which has led some founders to assume the entire reporting regime has been paused -- it has not. Tax advisors in Ukraine have specifically flagged 2026 as the year the State Tax Service is expected to begin serious inspections, citing that more than 60% of controllers had not filed required CFC reports as of April 2025. Assuming the paused penalties mean no obligation exists is a mistake worth avoiding proactively rather than discovering later.