Fact Checked by Editorial Staff
To obtain EIN for Kansas 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 a Kansas 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 Kansas 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 Kansas–
- 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 Kansas
When a foreign LLC is willing to start its business in Kansas, it has to be well aware of the rules for foreign entities in the state. The entity must follow the guidelines to form a foreign LLC in Kansas. Here are some important points to note,
Transacting Business In the State of Kansas
Kansas State law governs when foreign LLCs are required to collect sales tax. To be obligated to collect sales tax from Iowa citizens, a firm must have a physical presence or nexus in the state. In most cases, this means that the LLC must have a warehouse, a store, or an office functioning in the State or employing a sales representative in the State.
Registering The Business
The business entity must file a Kansas Foreign Limited Liability Company Application with the Kansas Secretary of State Office to register a foreign LLC in Kansas. In addition, proof of existence or a certificate of good standing should be attached with the registration application, issued by the state where the business is originally registered.
Effect of Non Registration
If your Foreign LLC is not registered under Kansas Law, then the following consequences may arise for such a business LLC:
- It shall not be permitted to file a lawsuit in the state.
- The Kansas attorney general can file a lawsuit to prevent such LLC from conducting business in the state.
- Such a business LLC will be accountable for costs and penalties for all years it was supposed to be registered but wasn’t.
However, the LLC’s contracts will not be invalidated or prevented from defending a lawsuit in Kansas if it is not registered.
Kansas Consumer Protection Act
The Deceptive Acts and Practices under the Kansas Consumer Protection Act state that no business entity shall engage in any deceptive act or trade practice in connection with a consumer transaction. Any such prohibited act is strictly regulated by the State and is penalized.
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 Kansas
The speed at which you can obtain an EIN for your foreign LLC in Kansas largely depends on how you choose to apply for it. One common method is to apply online through the Internal Revenue Service (IRS) website. This process is relatively quick and can be completed within a few business days. All you need to do is fill out an online application form, and once you have submitted it, you will receive your EIN immediately. This is the fastest way to obtain an EIN for your foreign LLC in Kansas.
Another option is to apply by mail or fax. While this method may take longer, it is still a viable option for those who cannot apply online. To apply by mail or fax, you will need to fill out Form SS-4 and send it to the appropriate IRS office. The processing time for this method can vary, but in general, you can expect to receive your EIN within 4-6 weeks.
It is important to note that the process of obtaining an EIN for a foreign LLC in Kansas may be slightly different from that of a domestic LLC. Foreign LLCs are those that have been organized under the laws of a state or country other than Kansas. In order to obtain an EIN for your foreign LLC, you will need to provide additional documentation proving your foreign status, such as a Certificate of Good Standing from your home state or country.
Overall, the speed at which you can obtain an EIN for your foreign LLC in Kansas will ultimately depend on the method you choose to apply. If you are looking for a quick and efficient process, applying online through the IRS website is your best bet. However, if you prefer a more traditional approach, applying by mail or fax is also an option. Whichever method you choose, obtaining an EIN for your foreign LLC in Kansas is a necessary step in the growth and success of your business.
In Conclusion
Obtaining EIN for any Kansas 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.