To obtain EIN for Indiana 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 Indiana 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 Indiana 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 Indiana–
- 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 Indiana
To start your foreign LLC in Indiana, you have to keep a few things in mind. There are some rules and regulations to form a foreign LLC in Indiana. Here are some important things to know,
Transacting Business In The State Of Indiana
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 the particular state, a firm must have a physical presence in—or nexus with—the state, such as establishing a warehouse, a store, or an office in the State or employing a sales representative in the State.
Registering The Business
The Indiana Foreign LLC must file a Foreign Registration Statement with the State office. The business must file an Application for Certificate of Authority with the Business Services Division to register a foreign LLC in Indiana.
The business LLC must submit a Certificate of Good Standing or Existence issued by the Secretary of State office of the home state with the Application.
Effect Of Non-Registration
A foreign corporation undertaking business in Indiana without a certificate of authority is barred from pursuing a case in Indiana court until it receives a certificate of authority.
If a foreign corporation transacts business in Indiana without a certificate of authorization, it shall be liable to a civil penalty in the amount of ten thousand dollars ($10,000). The attorney general has the authority to collect any fines owed under this provision.
A foreign corporation’s inability to acquire a certificate of authority has no effect on preventing the foreign corporation from defending itself in an Indiana court case.
Deceptive Trade Practices
Indiana’s deceptive trade practices statutes follow the Uniform Deceptive Trade Practices Act, which strictly prohibits any deceptive trade activities to be undertaken by business entities. In case of a breach, the Attorney General has the authority to prosecute a business who violates this clause.
How Fast Can You Obtain EIN for Foreign LLC in Indiana
An EIN for foreign LLC in Indiana can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
First and foremost, it is crucial to decipher what an EIN is and why it is necessary for a foreign LLC. An EIN is a unique nine-digit identification number assigned by the Internal Revenue Service (IRS). It is primarily used to identify businesses for tax purposes, enabling them to file returns, hire employees, and open bank accounts. For a foreign LLC operating in Indiana, an EIN is almost always a requirement, regardless of whether it has employees or not.
The process of obtaining an EIN for a foreign LLC in Indiana involves several steps. Initially, the LLC must complete the SS-4 application form issued by the IRS. This form requires various details, such as the LLC’s name, physical address, and the name and address of a responsible party. This responsible party may be an individual associated with the LLC or an authorized representative. It is vital to provide accurate information to expedite the process and avoid unnecessary delays.
Once the SS-4 form is completed, it can be submitted to the IRS via mail, fax, or online. However, it is important to note that the IRS prefers online submissions, as they are often processed more swiftly than other methods. It is worth considering this option to streamline the process and obtain the EIN expeditiously.
Upon submitting the SS-4 form, it typically takes a few weeks for the IRS to review and process the application. However, during peak periods or when submitting through mail or fax, it may take longer. It is always advisable to check the current processing times with the IRS to set realistic expectations.
While obtaining the EIN is vital for a foreign LLC to operate in Indiana, it is equally important to remain proactive throughout the process. This means planning ahead and starting the application process in a timely manner to allow for any unforeseen delays. Preparation is key, and being mindful of the necessary requirements will help facilitate the overall timeline.
It is essential to recognize that setting up a foreign LLC and obtaining an EIN in Indiana may require patience and persistence. However, by following the correct protocol and ensuring all necessary documents are provided accurately, the process can be relatively straightforward.
In conclusion, setting up a foreign LLC and obtaining an EIN in Indiana can undoubtedly be a complex endeavor. However, with the correct understanding of the steps involved, maintaining clear communication with the IRS, and consistent attention to detail, foreign LLCs can navigate the process efficiently. By dedicating time and effort to the application, a foreign LLC can successfully obtain an EIN in Indiana and commence their operations in a timely manner.
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.
In Conclusion
Obtaining EIN for any Indiana 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.
