Fact Checked by Editorial Staff
To obtain EIN for Delaware 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 a Delaware 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.
On this page, you’ll learn about the following:
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 Delaware 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:
- 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.
- 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.
- 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.
- 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.
- 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:
- 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.
- 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
- 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 - Ways to apply for EIN Delaware–
- 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 Delaware
To start a foreign LLC in Delaware one has to follow some guidelines. There can be some restrictions or rules for the foreign LLCs to form a business in the state of Delaware. Here are some points to note before you start your foreign LLC in Delaware,
Transacting Business in The State of Delaware
State regulations determining when foreign enterprises are required to collect state sales tax in their state also assist in defining what it means to do business. To become eligible to collect state sales tax on sales to residents of that state, the business must have a physical presence in or nexus with the state. For instance, the Delaware Foreign Business LLC must own a warehouse, a store, or an office in the State or employ a sales representative in the State.
Registering The Business In Delaware
By filing for a certificate of incorporation with the Secretary of State of Delaware, any non-US company can become a Delaware corporation or LLC. The Delaware Division of Revenue will also require the business LLC to get a State of Delaware Business License.
Effect Of Non-Registration
If a foreign LLC is not registered under Delaware Law, then the following consequences may arise:
- It shall lose its right to legal representation in the Court of Law in the State.
- Such a business LLC will be entitled to file a lawsuit only after it has settled all the pending fees and penalties due for all years and portions of years during which it was required to register.
- An LLC doing business in Delaware will also be fined $200 for each year or part of a year that it fails to register.
- Furthermore, a member of an LLC is not accountable for the obligations of the LLC just because the corporation did business in Delaware without being registered.
The fact that the business LLC is not registered does not invalidate its contracts or preclude it from defending a lawsuit in Delaware, in case a dispute arises from such contracts.
Deceptive Trade Practices
Delaware’s deceptive trade practices laws are governed by the Uniform Deceptive Trade Practices Act. The UDTPA prohibits any individual or corporation from engaging in any deceptive trade practices or activity with the intent of misleading or luring the public into acquiring a product or service. A person found to be engaging in illegal commercial activities can be prosecuted by the Attorney General.
How Fast Can You Obtain EIN for Foreign LLC in Delaware
An EIN for foreign LLC in Delaware can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
Title: Navigating the Swiftness of Obtaining EIN for Foreign LLCs in Delaware
When it comes to establishing a foothold in the United States, Delaware has long been known as an enticing hub for foreign businesses. Known for its business-friendly environment, this site of entrepreneurs’ dreams offers plenty of advantages, with the process of obtaining an Employer Identification Number (EIN) being one of the vital first steps.
Foreign limited liability companies (LLCs) aiming to set foot in the United States are often met with favorable regulatory frameworks, including a streamlined and expedited process of acquiring an EIN in Delaware. This not only aids the globalization of commerce but also supports Delaware’s well-deserved reputation as an accommodating business destination.
The speed at which a foreign LLC can obtain an EIN in Delaware highlights the efficiency and effectiveness of the state’s government systems. The Delaware Division of Corporations promptly responds to foreign business inquiries and crafted relevant guidelines and procedures to ensure an efficient EIN application process.
One of the most significant benefits for foreign LLCs is the capability to acquire an EIN online. Streamlining the process through an online platform expedites the timeline while providing greater convenience for businesses poised for expansion. This approach reflects Delaware’s proactive stance in embracing digital transformation and incrementally reducing complexities within the registration process.
Furthermore, the straightforward documentation requirements emphasize Delaware’s commitment to offering an inclusive and seamless incorporation experience. By clearly outlining the necessary paperwork and eligibility criteria for obtaining an EIN, Delaware authorities minimize potential ambiguities and enable foreign businesses to navigate the process with clarity and confidence.
Additionally, while each case may differ in detail, the average timeline for acquiring an EIN for foreign LLCs in Delaware is often commendably brief. Quick turnaround times positively affect a foreign company’s ability to move swiftly in launching their operations throughout the United States. Consequently, it also allows organizations to establish relationships with local partners and clients promptly.
The efficiency of securing an EIN in Delaware not only aligns with global speed expectations in the business world but also contributes to the state’s appeal as an attractive investment location. It demonstrates Delaware’s commitment to fostering an environment where foreign businesses can thrive – where ambition and efficiency intersect.
The accelerated process of obtaining an EIN for foreign LLCs in Delaware further adds testimony to the state’s legacy as a business- and entrepreneurial-friendly jurisdiction. The expeditious administrative response by government entities reflects an underlying understanding that attracting foreign enterprises significantly contributes to the economic growth and vitality of the region.
Foreign LLCs seeking to establish operations in Delaware can thus be confident in the state’s efficiency and dedication when it comes to facilitating their establishment on American soil. As globalization continues to reshape the business landscape, Delaware’s proven commitment towards prioritizing speed, digitalization, and ease of doing business ensures its continued recognition as a prime landing spot for ambitious ventures from abroad.
In summary, the swift and streamlined process of acquiring an EIN for foreign LLCs in Delaware signifies not only the state’s commitment to promoting foreign investments but also its ingenious approach to addressing the needs of international enterprises. Delaware’s reputation as a desirable business destination is firmly underpinned by the efficient mechanisms in place for foreign entrepreneurs aiming to incorporate their aspirations stateside.
FAQ
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.
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.
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.
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 Delaware
When it comes to forming a business in the United States, Delaware has long been a favored destination for both domestic and foreign entrepreneurs. With its business-friendly laws, favorable tax environment, and efficient legal system, it’s no wonder that Delaware is known as the “Corporate Capital of the World.”
For foreign Limited Liability Companies (LLCs) looking to establish a presence in Delaware, obtaining an Employer Identification Number (EIN) is an important first step. An EIN is a unique nine-digit number used by the Internal Revenue Service (IRS) to identify businesses for tax purposes. Without an EIN, a business cannot open a bank account, hire employees, or file taxes in the United States.
One of the main attractions of starting a business in Delaware is the speed and efficiency with which you can get up and running. The process of obtaining an EIN for a foreign LLC in Delaware is no exception. Thanks to Delaware’s streamlined procedures and online resources, foreign entrepreneurs can typically obtain an EIN in a matter of days.
To apply for an EIN, foreign LLCs must submit a completed Form SS-4 to the IRS. This form can be submitted online, by mail, or by fax. While the traditional method of mailing a paper application can take several weeks to process, applying online can dramatically reduce the time it takes to receive an EIN.
In addition to the Form SS-4, foreign LLCs will need to provide certain documentation to the IRS, such as a Certificate of Good Standing from the LLC’s home country and a copy of the LLC’s Operating Agreement. This documentation helps to verify the legitimacy of the business and ensure compliance with U.S. tax laws.
Once the IRS has processed the EIN application, the foreign LLC will receive its unique nine-digit number via mail or email. From there, the LLC can begin conducting business in Delaware, hiring employees, and opening a bank account. With an EIN in hand, the LLC is now a fully recognized entity in the eyes of the U.S. government.
For foreign entrepreneurs looking to establish a business in the United States, Delaware offers a fast and efficient pathway to obtaining an EIN. By taking advantage of Delaware’s business-friendly environment and streamlined procedures, foreign LLCs can quickly get their businesses up and running, allowing them to focus on what truly matters – building and growing their business.
In conclusion, the process of obtaining an EIN for a foreign LLC in Delaware is a straightforward and efficient one, thanks to Delaware’s pro-business policies and online resources. By taking advantage of these resources, foreign entrepreneurs can quickly and easily establish their business in the United States, positioning themselves for success in the competitive global marketplace.
In Conclusion
Obtaining EIN for any Delaware 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.