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


Steve Bennett
Steve Bennett
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To obtain EIN for Aransas 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 Arkansas 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 Arkansas 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 Arkansas–
    • 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.

Restriction in Business For Foreign Entities in Arkansas

Having a foreign LLC in Arkansas is nothing but a profitable deal. However, it is not as easy as it looks to form a foreign LLC in Arkansas. There are some points one has to keep in mind before starting their Arkansas Foreign LLC. Here are the points to note,

Transacting Business In Arkansas

For a collection of State Sales Tax in Arkansas, the State regulations determine when the foreign enterprises are required to collect state sales taxes. For the foreign entities to collect state sales tax on sales to citizens of the particular state, the company must have a physical presence in the state. For instance, for a foreign LLC to collect State Sales Tax in Arkansas, they should either own a warehouse, a store, an office in the State, or have a sales representative in the State.

If the foreign business LLC intends to initiate its operation in the State of Arkansas, then in accordance with the Arkansas Uniform Limited Liability Act, the LLC must register its existence with the State office.

The business LLC must visit the Arkansas Secretary of State website and apply for a Certificate of Registration for a foreign entity on the Arkansas SOS portal. As a part of the application process, the foreign LLC must also attach a Certificate of Existence or Good Standing issued by the State where the business LLC was originally registered.

Effect Of Non-registration

If a foreign LLC is not registered with the Secretary of State of Arkansas in accordance with the State Laws and procedures, then the following consequences may arise for such a business LLC –

  • The business LLC shall not own any right to legal representation in the Court of Law in Arkansas.
  • The LLC will also be responsible for all costs and penalties that could have been avoided if the LLC had been properly registered.
  • Because the LLC did business in Arkansas without registering, the members of the LLC shall not be held accountable for the LLC’s debts and liabilities.
  • However, the non-registration of the LLC shall not render its contract to be invalid. The LLC will hold the right to defend its claim in case a dispute arises from such contracts.

FAQ

How to obtain EIN for foreign LLC in Arkansas?

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 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 have a third-party designee obtain EIN. A third-party designee is an individual appointed by the LLC. That person will be responsible for fill-up the form SS-4 by answering all the questions and also can receive the issued EIN if applied by phone.

How Fast Can You Obtain Ein for Foreign LLC in Arkansas

The question of how fast one can obtain an EIN for a foreign LLC in Arkansas depends on several factors. The first step in the process is determining whether the LLC is considered a domestic or foreign entity. A domestic LLC is one that is registered in the state where it conducts business, while a foreign LLC is registered in a different state or country. If the LLC is foreign and does not have a physical presence in Arkansas, the process of obtaining an EIN may take longer.

One of the options for applying for an EIN for a foreign LLC in Arkansas is by mail. While this method may take longer than applying online or by phone, it is still a viable option for business owners who prefer to submit their applications in writing. When applying by mail, it is essential to complete Form SS-4, Application for Employer Identification Number, and send it to the appropriate IRS office. It is recommended to allow several weeks for processing and expect some delays due to the mailing time.

Another option for obtaining an EIN for a foreign LLC in Arkansas is by phone. This method is generally faster than applying by mail but may still take some time due to potential wait times and the need to provide accurate information over the phone. To apply for an EIN by phone, one must call the IRS Business and Specialty Tax Line during regular business hours and follow the instructions provided by the representative.

An increasingly popular method for obtaining an EIN for a foreign LLC in Arkansas is by applying online. The IRS has streamlined the process by offering an online application that allows business owners to receive their EIN instantly upon completion of the form. This method is generally the quickest and most convenient way to obtain an EIN, as it eliminates the need for waiting for processing times or mailing documents. Business owners can simply visit the IRS website, complete the online application, and receive their EIN within minutes.

In conclusion, while the process of obtaining an EIN for a foreign LLC in Arkansas may vary in speed depending on the method chosen, it is essential for business owners to prioritize this step to ensure compliance with tax laws and regulations. Whether applying by mail, phone, or online, taking the time to obtain an EIN is a crucial step in establishing and operating a successful business entity in the United States.

In Conclusion

Obtaining EIN for any Arkansas 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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