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?
- What is an EIN (Employer Identification Number)?
- EIN for a Foreign Entity or Foreign LLC
- Restriction in Business For Foreign Entities in Idaho
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.
When forming an LLC in Idaho, you have a few options. You can file online or in person. Depending on the choice, the cost can vary, and it may take a little longer. Obtaining an EIN for an LLC in Idaho is often faster than you might think. However, it still takes time to get the paperwork in order.
To create a business in Idaho, you must first register with the Secretary of State. Once your business is formed, you must file an annual report with the Secretary of State. Failure to do so can result in your LLC being dissolved in sixty days. The fee to do so is usually a hundred dollars. Alternatively, you can opt for an expedited processing option for an additional fee.
In addition to registering with the Secretary of State, you must also secure a registered agent. A registered agent is someone who has the authority to accept and forward legal notices for your company. These can be an individual or a corporation. Generally, an LLC must have a registered agent who is a resident of Idaho. If you do not have a registered agent, you can apply for one with the Secretary of State’s office.
An operating agreement is also important. It outlines the day-to-day operations of your business, who owns the business, and how profits are distributed among members. While you do not need to have an operating agreement to form an LLC in Idaho, it is helpful to have one. This can avoid conflicts and confusion and will also allow you to make more informed decisions.
One of the most significant benefits of an LLC is the ability to operate outside of Idaho. You can lease a warehouse or open a physical branch. You can also hire employees and receive tax reimbursement from the state.
Unlike corporations, LLCs are not taxed at the corporate level. Instead, the profits of a business are taxed at the personal level. Thus, LLCs are the easiest way to do business in Idaho.
Having a well-written and comprehensive operating agreement can make your life easier. Besides preventing conflict, a good operating agreement can make sure that the day-to-day activities of your company are properly documented. Also, it can save you money on attorneys and other professionals.
The best way to find out how fast you can obtain an EIN for your LLC in Idaho is to contact the Secretary of State’s office. They can give you a list of all the permits that you need to apply for. Likewise, they can provide you with information on how to apply for a federal EIN.
Although you should not count on having your new LLC up and running in just a few days, you can speed up the process by paying an expedition fee. You can pay online using all major credit and debit cards. Alternatively, you can mail in a paper application and pay by check. Typically, it takes between seven and ten days to process an LLC.
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.
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.