To obtain EIN for Idaho 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 Idaho 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 Idaho 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 Idaho–
- 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 Idaho
If you want to start an Idaho foreign LLC, then you must keep a few things in mind. There are some dos and don’ts in the process. Here are some important points to note before you start your Idaho foreign LLC,
Transacting Business In The State of Idaho
The State regulations offer direction as to whether foreign enterprises are required to collect state sales taxes on the sales income in the State. To be obligated to collect state sales tax on sales to citizens of that state, the business must have a physical presence or a similar nexus in the state, such as a store, a warehouse, or an office or employing a sales representative in the State of Idaho.
Registering The Business
An Idaho Foreign Business LLC must file a Foreign Registration Statement with the Idaho Secretary of State Office to register a foreign LLC in the State.
Before conducting business in Idaho, the foreign LLC must get a Certificate of Authorization from the State office post the registration application. The Idaho Secretary of State requires a certificate of good standing or its equivalent from the home state to approve a foreign qualification application.
Effect Of Non-registration
If a foreign LLC is not registered under Idaho Law, then the following situations may arise for such a business LLC:
- The foreign LLC shall not be permitted to file a lawsuit in the Court of Law in the State.
- The Idaho Attorney General can take legal action to prevent such a business LLC from conducting business in the state.
- The LLC shall be responsible to compensate for all the debts, liabilities, costs and penalties that may arise due to non-registration in addition to the costs which arise post registration.
- Furthermore, an LLC member’s personal responsibility will not be discharged just because the firm did business in Idaho without being registered.
The fact that the LLC is not registered does not invalidate its contracts or preclude it from defending a lawsuit in Idaho.
Deceptive Trade Practice in Idaho
The Idaho Consumer Protection Act prohibits any deceptive trade activities to be undertaken by the business LLCs, such as selling old materials as new products, fraud, and misrepresenting information about a competitor’s products or services. Violations may be prosecuted by both private persons and the state. The Attorney General can initiate a lawsuit on behalf of the state against the offenders.
How Fast Can You Obtain EIN for Foreign LLC in Idaho
An EIN for foreign LLC in Idaho can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
For those unfamiliar with the concept, an EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity. It is often required for tax purposes and is crucial for foreign LLCs operating in the United States.
In the case of Idaho, the process revolves around paperwork and documentation. While some might argue that this can slow down the process, it is necessary to ensure compliance and legal transparency. The first step begins with filing an Application for Registration of Foreign Limited Liability Company with the Idaho Secretary of State, Business Entities Division.
As with any governmental procedure, it is important to pay close attention to detail when filling out the necessary forms. This includes providing accurate information about the LLC’s legal name, principal office address, registered agent, and the names and addresses of any managers or members. Failure to provide complete and accurate information can delay the processing of the application.
Once the Application for Registration is submitted, the Idaho Secretary of State typically reviews and processes it in a timely manner. If all the required information is provided correctly, the application is usually processed without undue delay. However, if there are any discrepancies or errors, further communication with the applicant may be required to rectify the situation.
It is important to note that while the Idaho Secretary of State processes the initial application, it is the IRS that actually assigns the EIN. After the LLC’s registration with the Secretary of State is complete, the business entity can then apply for an EIN directly with the IRS. The process can be completed online, through mail, or by fax, allowing for flexibility and convenience.
Once the IRS receives the application, they strive to issue EINs quickly, usually within a few weeks. However, depending on the volume of applications and other factors, the processing time may vary. It is important for foreign LLCs to bear in mind that patience might be necessary when waiting for the final EIN to be assigned.
In conclusion, the process of obtaining an EIN for a foreign LLC in Idaho may entail some administrative effort and a slight wait time. However, the state’s procedures ultimately aim to facilitate and expedite the process. By adhering to the required paperwork and verifying the accuracy of information provided, foreign LLCs in Idaho can expect a relatively smooth experience in obtaining their EIN.
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 to 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.
In Conclusion
Obtaining EIN for any Idaho 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.
