EIN for Idaho Foreign LLC – How to Obtain EIN For Foreign Entity


Steve Bennett
Steve Bennett
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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.

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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:

  1. 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.
  2. 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
  3. 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
  4. 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.

FAQ

How to obtain EIN for foreign LLC in Idaho?

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.

Do I need to obtain EIN for foreign LLC always?

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.

Are EIN and TIN the same or different?

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.

Do I need a Third Party Designee to obtain EIN for Foreign LLC?

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.

How Fast Can You Obtain Ein for Foreign LLC in Idaho

The process of obtaining an EIN for a foreign LLC in Idaho typically involves several steps, which can vary in the time it takes to complete. The standard method for obtaining an EIN is through the Internal Revenue Service (IRS) website, where foreign LLCs can apply online. This process usually takes up to two weeks for the IRS to process the application and issue an EIN, although it can sometimes be faster.

If foreign LLCs prefer a faster method, they can opt for a third-party designee to apply for an EIN on their behalf. This process usually takes just a few days, as the designee can obtain the EIN on behalf of the foreign LLC immediately after submitting the application. This expedited process can be especially beneficial for foreign LLCs that need an EIN quickly to start doing business in Idaho.

Furthermore, some foreign LLCs may find the process easier and faster if they have an established physical presence in the U.S., such as a registered agent in Idaho. Having a physical presence in the U.S. can help expedite the EIN application process, as it provides a more streamlined verification process for the IRS. Additionally, having a registered agent can help foreign LLCs navigate the complexities of U.S. tax requirements and provide support throughout the EIN application process.

While the process of obtaining an EIN for a foreign LLC in Idaho can vary in how fast it can be completed, it is important for foreign LLCs to plan ahead and be prepared to gather all necessary documentation to expedite the process. This includes having a valid legal business name, choosing a responsible party to apply for the EIN, providing accurate information about the LLC’s structure and activities, and ensuring that all required forms are completed correctly.

In conclusion, the process of obtaining an EIN for a foreign LLC in Idaho can be streamlined and expedited with careful planning and preparation. By understanding the different methods available for applying for an EIN and selecting the most appropriate option for their needs, foreign LLCs can obtain an EIN quickly and efficiently. This crucial step allows foreign LLCs to establish a strong foundation for their business operations in Idaho and ensure compliance with U.S. tax laws.

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.

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