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To obtain EIN for Hawaii 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 Foreign LLCs to form a Hawaii 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 Hawaii 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 Hawaii–
- 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 Hawaii
For a foreign LLC conducting business in Hawaii is easy. However, there are some restrictions businesses have while forming a foreign LLC in Hawaii. One needs to know the following points before setting up their foreign LLC in Hawaii,
Transacting Business In The State of Hawaii
The State regulations determine whether foreign enterprises are required to collect state sales taxes in their home state. 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 establishing a warehouse, an office, or a store in the State or employing a Sales representative in Hawaii.
Registering The Business
A foreign business LLC is not permitted to do business in Hawaii unless it receives a Certificate of Authority issued by the Department of Commerce and Consumer Affairs (DCCA) of the State of Hawaii.
The business LLC must file an Application for Certificate of Authority for Foreign Corporation (Form FC-1) with the DCCA, Business Registration Division, together with the required filing fee(s) to register a Foreign Profit Corporation in Hawaii.
Effect Of Non-Registration
If a foreign LLC is not registered under Hawaii law, then it shall suffer through the following consequences:
- It is not permitted to file a lawsuit in the state.
- The business LLC will also be responsible for any costs or penalties that it should have paid if it had been legally registered.
- Furthermore, LLC members’ personal responsibility is not waived just because the corporation conducted business in Hawaii without permission
- The fact that the business LLC is not registered does not invalidate its contracts or preclude it from defending a lawsuit in Hawaii in case of a contractual dispute.
Deceptive Trade Practices
The Uniform Fraudulent Trade Practices Act, as well as criminal, civil, and vehicular code provisions targeted at preventing and prosecuting deceptive trade practices, have been enacted by Hawaii. These regulations restrict anything from deceptive advertising to tampering with a car’s odometer in order to maintain an open, fair, and transparent marketplace.
How Fast Can You Obtain EIN for Foreign LLC in Hawaii
An EIN for foreign LLC in hawaii can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
The process of obtaining an EIN may seem daunting at first, but with the right understanding and guidance, it can be a relatively smooth experience. The first step is to determine the legal structure of your business. Once you have established yourself as an LLC, you can proceed with obtaining an EIN.
So how fast can one obtain an EIN for a foreign LLC in Hawaii? The answer may depend on several factors, but generally, it is a process that can be accomplished within a reasonable timeframe. In most cases, foreign LLCs can obtain an EIN instantaneously through online filing.
The Internal Revenue Service (IRS) provides an online application for foreign businesses to obtain their EIN. This method offers a quick and efficient way to receive your EIN without any delays. The application can be accessed 24/7, making it convenient for entrepreneurs across different time zones.
Although the online application process is swift, there are a few considerations to keep in mind before diving in. Firstly, it is essential to have all the necessary information and documentation readily available. This includes your LLC’s legal name, physical and mailing addresses, responsible party’s Social Security Number or Individual Taxpayer Identification Number (ITIN), and the principal business activity of the LLC.
Additionally, it is crucial to ensure proper formatting of the name and address information to avoid any unnecessary delays. Engaging a reliable tax attorney or business consultant to assist you throughout the EIN application process can prove to be immensely helpful, especially for foreign entrepreneurs who may be less familiar with U.S. tax regulations.
Furthermore, it is important not to underestimate the potential timeframe for your EIN application’s approval. While the online application is typically instantaneous, sometimes certain circumstances may delay the process. These may include technical glitches, review by the IRS due to inconsistencies or errors, or the need for additional documentation.
However, it is worth noting that such circumstances are generally uncommon, and most foreign LLCs can acquire their EIN promptly. In case any issue arises, the IRS offers assistance through their dedicated helpline and online support options. Having their contact information readily accessible can be useful for seeking clarification or resolving any concerns.
In conclusion, it is reassuring to know that obtaining an EIN for a foreign LLC in Hawaii can be a relatively swift process. Entrepreneurs venturing into the exciting landscape of Hawaii’s market can rely on the online application provided by the IRS to acquire their EIN seamlessly. Although there might be rare instances where approval is delayed, staying prepared and seeking guidance from experts can alleviate any potential obstacles. By streamlining the process, getting an EIN for your foreign LLC can be another step towards flourishing in the realm of business expansion.
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 Hawaii
The good news is that obtaining an EIN for a Foreign LLC in Hawaii can be a relatively straightforward process. In fact, the Internal Revenue Service (IRS) offers several options for obtaining an EIN, each with its own timeline for processing. One of the quickest ways to obtain an EIN is through the IRS’s online application portal. By filling out the online application form, you can receive your EIN immediately upon completion of the form.
If you prefer to apply for an EIN through mail or fax, the processing time will be slightly longer, typically taking a few business days to receive your EIN. This method involves filling out Form SS-4, which can be downloaded from the IRS website. Once completed, you can either mail or fax the form to the appropriate IRS office for processing.
Another option for obtaining an EIN for a Foreign LLC in Hawaii is to apply over the phone through the IRS’s EIN Assistant service. By calling the IRS’s toll-free number and providing the necessary information over the phone, you can receive your EIN immediately at the end of the call.
In addition to the speed of obtaining an EIN, foreign businesses should also be aware of any additional requirements or considerations when applying for an EIN in Hawaii. For example, if your Foreign LLC already has an EIN from another state but is now expanding to Hawaii, you will need to apply for a new EIN specifically for your Hawaii operations.
It is important to note that while obtaining an EIN for a Foreign LLC in Hawaii is relatively fast and simple, it is essential to ensure that all information provided on the application is accurate and up-to-date. Any errors or discrepancies in the application can result in delays or other complications in obtaining your EIN.
Overall, the process of obtaining an EIN for a Foreign LLC in Hawaii is relatively fast and straightforward, with several options available for obtaining your EIN quickly. By being aware of the different application methods and requirements, foreign businesses can efficiently navigate the process of obtaining their EIN and focus on expanding their operations in Hawaii.
In Conclusion
Obtaining EIN for any Hawaii 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.