To obtain EIN for Florida 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 Florida 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?
- What is an EIN (Employer Identification Number)?
- EIN for a Foreign Entity or Foreign LLC
- Restriction in Business For Foreign Entities in Florida
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 Florida 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 Florida–
- 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 Florida
When you are about to start a foreign LLC in Florida, you must know about the state’s rules and regulations. There are some points that must be considered before you start a foreign LLC in the state of Florida,
Transacting Business In The State Of Florida
The State regulations guide the collection of State sales tax by foreign enterprises. 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, such as owning a warehouse in Florida, a store, or an office in the State of employing a sales representative in the State.
Registering The Business
If a foreign LLC wishes to do business in the State of Florida, it must register its out-of-state corporation with the Secretary of State of Florida Office. A certificate of existence (also known as a certificate of good standing) issued by the Secretary of State of the home state, a completed application, a Florida registered agent, and the payment of a filing fee are all required to qualify your corporation to conduct business in Florida.
Effect Of Non-Registration
If a foreign LLC is not registered under Florida Law, then the following situations may result from the same:
- Such a business LLC may not be permitted to file a lawsuit in the state or legally represent a matter of their interest in the Court of Law.
- The LLC shall also be responsible for all costs and penalties that it should have paid if it had registered legally.
- Plus, for each year the LLC conducts its business without a certificate of authority, it might face a civil penalty of $500 to $1,000.
However, the LLC’s contracts will not be invalidated or prevented from defending a lawsuit in Florida if it is not registered.
DECEPTIVE TRADE PRACTICES
The Deceptive and Unfair Trade Practices Act, included in Chapter 501 of the Florida Statutes, prohibits deceptive practices by business entities. The legislation governs a variety of businesses, including food and supplements, real estate, consumer items, and credit cards.
How Fast Can You Obtain EIN for Foreign LLC in Florida
An EIN for foreign LLC in Forida can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
Starting an LLC in Florida as a foreign entity can be an exciting endeavor. It can also be complicated and time consuming. One of the most important steps in setting up an LLC is obtaining an EIN (Employer Identification Number). An EIN is a nine-digit number issued by the Internal Revenue Service (IRS) and is used to identify a business entity. An EIN is required to open a business bank account, hire employees, and file taxes. It is important to note that foreign LLCs in Florida must obtain an EIN from the IRS in order to do business in the state.
The length of time it takes to obtain an EIN for a foreign LLC in Florida can vary depending on how quickly you complete the necessary paperwork and how long it takes for the IRS to process your application. If you are applying for an EIN online, the process is typically faster than if you are applying by mail. In most cases, an online application can be completed within one business day. If you apply by mail, it can take up to four weeks for the IRS to process your application.
When applying for an EIN, it is important to have all of the necessary paperwork and information ready. This includes the name and address of the foreign LLC, the date of formation, the names of the members, and the contact information of the LLC’s registered agent. You will also need to provide a copy of the LLC’s Articles of Organization and a valid passport for each LLC member. Once you have gathered all of the necessary documents and information, you can begin the application process.
There are two ways to obtain an EIN for a foreign LLC in Florida: online or by mail. When applying online, you will need to complete the online application form and submit it to the IRS. The IRS will then review your application and issue an EIN within one business day. If you are applying by mail, you will need to complete the EIN application form and submit it to the IRS. The IRS will then review your application and issue an EIN within four weeks.
It is important to note that the process for obtaining an EIN for a foreign LLC in Florida can be complicated. You may need to consult with a professional or tax advisor before submitting your application to ensure that all of the necessary documents and information are included. Additionally, if you are applying by mail, you may need to include additional forms and documents.
In conclusion, obtaining an EIN for a foreign LLC in Florida can be a time consuming process. However, if you have all of the necessary paperwork and information ready, the process can be completed quickly. If you apply online, the process can be completed within one business day. If you apply by mail, it can take up to four weeks for the IRS to process your application.
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.
Obtaining EIN for any Florida 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.