EIN for Alaska Foreign LLC – How to Obtain EIN For Foreign Entity


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To obtain EIN for Alaska foreign LLC one has to follow a few steps. Limited Liability Companies are easier to form than other structures of business. However, it is a bit tricky for the LLCs to form a foreign LLC in any of the states. There can be some restrictions for the Foreign LLCs to form an Alaska LLC. Take a look at this article to know about how to obtain EIN for your foreign LLC. It will answer all your questions related to EIN, including the procedure for a foreign entity to obtain EIN, the filing cost, etc. 

What is a Foreign Limited Liability Company?

An LLC is always formed in accordance with the state rules. The state where the LLC is formed is often referred to as the main state for the LLC. It is where the LLC has its main operational center. When the LLC business members are trying to expand the LLC  & wish to form it in some other states as well, the LLC is a foreign entity in the new state. The LLC is formed in the new state will be referred to as “Foreign Entity” or  “Foreign Corporation” or “Foreign LLC.” Forming the Alaska Foreign LLC is easier & involves obtaining an EIN.

What is an EIN (Employer Identification Number)?

An EIN or Employer Identification Number works as a Social Security Number for your business. An EIN is a unique 9 digit identification code issued to businesses, by the Internal Revenue Service (IRS) of the U.S.S., for tax filing & reporting purposes.

Are EIN, FTIN & FEIN the same?

An Employer Identification Number (EIN) is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). So, there is no difference between these three.

Why Does a Business Need EIN?

An LLC will require EIN for the following reasons:

  1. To file Tax returns – EIN makes it easy to file the tax returns with the IRS. The IRS uses EIN to supervise all the business finances of the LLC. 
  2. To Hire Employees – To hire employees in the LLC, an Employer will need the EIN. EIN lets the employers set the payrolls of the employee fo every month. IRS tracks the employee’s payroll taxes with the help of the EIN.
  3. To maintain the corporate veil – In an event where someone has sued the LLC or has filed a lawsuit against it, the EIN protects members’ assets. EIN is an essential part of the company’s corporate veil, which differentiates the business entity from its members.
  4. To protect the individual Identity of the member – The Limited Liability Company uses EON for all its taxation & finances. Nowhere in the financial process does an LLC use an individual’s Social Security Number; hence the Identity of individual members is kept safe.
  5. To open a business bank account – Without the EIN, an LLC can’t open a business account. It is essential to get an EIN even for the business credits & business licenses. 

When Does IRS Ask for EIN (Employer Identification Number)?

The taxation documents & reports are filed with the IRS, which requires an LLC about its EIN in the following circumstances.

  • An EIN is mandatory for an LLC with employees for tax filing & tax returns.
  • If the LLC is a multi-member business entity, EIN is required for drawing the partnership return files.
  • An EIN is also asked for excise tax filing.

EIN for a Foreign Entity or Foreign LLC

If someone is a foreign person or if the LLC is a foreign LLC, EIN allows them to start the LLC even without the Social Security Number. EIN allows the member of the foreign LLC to collect a payment, distribute the cash in the company & out of the company, hire employees & report or file taxes.

How to Obtain EIN for a Foreign LLC or a Foreign-Owned Corporation? 

Following is a step-by-step guide for obtaining an EIN for a Foreign LLC:

  1. Eligibility – Any person applying for the EIN must have a valid Taxpayer Identification Number, e.g., SSN or ITIN; only then can he apply for EIN.
  2. FORM SS-4 – If a foreign entity does not have a Tax Identification Number, it will have to fill-up the Form SS-4, an EIN application. This form is for foreign applicants who do not have a social security number or a physical address
  3. Filing the form with the required information – To be able to apply for the EIN, the following information has to be filled out correctly in the application form:  
    – Legal Name & Address of the Business
    –  The type of Business Entity
    – Reason for the application for an EIN- The name of the country where the business is incorporated
    – Number of employees
    – The industry in which the LLC does its business
    – Accounting Information
  4. Ways to apply for EIN Alaska
    • Online – An EIN can be obtained by applying online on the IRS website.
    • By phone – A foreign entity or LLC can apply for  EIN by calling on 267-941-1099, which is NOT a toll-free number.
    • By Fax – An EIN can also be obtained by fax. The LLC willing to obtain the EIN can fax Form SS-4 to 304-707-9471
    • By Mail – A completed form can be mailed to the Internal Revenue Service (IRS), Attn: EIN Operation, Cincinnati, OH 45999.

Restrictions in Business For Foreign Entities in Alaska

In Alaska, to start a foreign LLC, certain restrictions and rules one has to follow. Alaska foreign LLC does not mean the company is registered outside the United States. It means the LLC is registered in another state of the U.S.

Transacting Business In Alaska

State regulations that determine whether foreign enterprises are required to collect state sales taxes in their home state give some clarity on the subject. To be obligated to collect state sales tax on sales to citizens of that state, a firm must have a physical presence in—or nexus with—the state, for instance, the foreign LLC must have a warehouse, a store, an office, or a sales representative in the State of Alaska.

Registering The Business

In accordance with the Alaska Revised Limited Liability Company Act,  any foreign LLC must get themselves registered with the Department before starting their business operations in Alaska.

Effect of Non-Registration

If a foreign LLC is not registered under Alaska Law, the following consequences may arise from such a situation:

  • The LLC shall not have any legal right to sue in any of the state’s courts.
  • The LLC shall be responsible for costs that should have been paid had the LLC been properly registered, as well as civil fines of up to $10,000 per year.
  • Because the LLC did business in Alaska without registering, no member of the LLC is accountable for the LLC’s debts and responsibilities.
  • The fact that your LLC is not registered does not invalidate its contracts or preclude it from defending a lawsuit in Alaska.

Restricted Business

The Unfair Trade Practices Act read along with the Consumer Protection Act enforced in the State of Alaska identifies 57 illegal acts such as false representation and fraud, while the State’s antitrust law defines prohibited acts like creating a monopoly in a market and reducing competition by acquiring assets in another business and conspiring to form cartels in restraint of trade.

How Fast Can You Obtain EIN for Foreign LLC in Alaska

An EIN for foreign LLC in Alaska can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.

It can take a long time to get an Employer Identification Number (EIN) for a foreign LLC. The average waiting time for an EIN is about 2.5 to three months. However, this can vary from state to state. A foreign LLC may be involved in multiple revenue streams and have multiple purposes. This can cause the IRS to process your application more slowly. Therefore, you should be patient during busy times of the year.

If you have an Alaska LLC, you can obtain your EIN by going online to the Alaska Division of Corporations website. You can also send your form by mail or fax. In addition to obtaining your EIN, you will be able to open a business bank account for your business. Besides allowing you to open a business bank account, obtaining an EIN can be beneficial in other ways.

For example, if you are a foreigner looking to open a business account, obtaining an EIN will be beneficial because you can file taxes on your business. In order to get an EIN, you will need to fill out the appropriate forms, which can include Form SS-4.

You will need to provide some basic information about yourself, including your name, address, and your citizenship. When you are ready to apply, you can mail or fax your Form SS-4 to the IRS. Once you receive your approval, you will be mailed an EIN Confirmation Letter that shows the approved EIN for your LLC. These documents are important for your future tax returns.

Another requirement is that you must appoint a registered agent for your LLC. You can either appoint yourself as the registered agent or hire a professional to do it for you. Having a registered agent can be helpful if you have legal documents that need to be delivered to your business. But be aware that naming yourself as the registered agent can lead to serious problems.

You must provide the IRS with a mailing address for your LLC. Ideally, you will use an address that you regularly receive mail at. Alternatively, you can use the same address you use for the other forms that you file. If you want to be a bit more specific, you can use the same address you use when you apply for your LLC’s Articles of Organization.

Another option is to fill out a form called the Biennial Report. This form is due before January 2 of each filing year. An Alaska LLC must file this form within six months of formation and every two years thereafter. As part of the biennial report, you must list the names of all members and managers of the LLC. Additionally, you must list the date that the LLC was formed.

Whether you choose to register as a Limited Liability Company (LLC), a Partnership, or a C-Corporation, you will need to have an Employer Identification Number (EIN) and a registered agent. An EIN is a nine-digit number that is assigned by the Internal Revenue Service.

FAQ

How to obtain EIN for a foreign LLC in Alaska?

To obtain EIN for your foreign LLC, you have to apply for it from IRS. Fill up the Form-SS4 and send it via phone, fax mail or submit it online.

Do I need to obtain EIN for a foreign LLC always?

If you’re a self-employed individual then you do not have to obtain EIN, you can use your social security number to form an LLC.

Are EIN and TIN the same or different?

EIN and TIN (Tax Identification Number) are the same things. IRS issues both the identification numbers to the businesses. It is an eight-digit identification number issued by the IRS.

Do I need a Third Party Designee to obtain EIN for Foreign LLC?

It is not mandatory to appoint a third-party designee to obtain EIN. A third-party designee is an individual appointed by the LLC. That person will be responsible for filling up the form SS-4 by answering all the questions and also can receive the issued EIN if applied by phone.

In Conclusion

Obtaining EIN for any Alaska foreign LLC is a must. This number is required to conduct business, open up a business bank account, report the Taxes to IRS, and so on. EIN is any business entity’s Social Security Number that is mandatory to transact business.

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