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To obtain EIN for Kentucky 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 Kentucky 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 Kentucky 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 Kentucky –
- 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 Kentucky
In Kansas, before you start your foreign LLC, you must know the general regulations by the State. There are some important points that need to be considered before you form your Kentucky foreign LLC. These points are,
Transacting Business In the State of Kentucky
If a foreign business intends to transact business in Kentucky, then it must register the foreign company with the state of Kentucky, in accordance with Kentucky’s Limited Liability Company Act.
The Kentucky State laws also determine when foreign LLCs are obligated to collect sales tax, which is helpful. As a standard rule, the company must have a physical presence or nexus in Kentucky to be compelled to collect sales tax from Kentucky residents. In most circumstances, this implies the LLC must either have the following:
- A warehouse in Kentucky
- A store in Kentucky
- An office in Kentucky
- A sales representative in Kentucky
Registering The Business
To receive business licenses and permits, all businesses in Kentucky are required by law to register with the Secretary of State’s Office, the Department of Revenue, the Office of Employment Training, the Internal Revenue Service, and local municipalities. Certain specific business profiles require additional licenses and permits to carry out their businesses.
Effect Of Non Registration
If the Kentucky Foreign LLC is not registered as per the Kentucky laws, then it might have to face the following consequences;
- Such a business LLC shall not be allowed to sue in any of the state’s courts.
- In addition, the LLC faces a $2 fine for every day it does business in Kentucky without a certificate of authorization.
Nevertheless, such LLC contracts will not be invalidated or prevented from defending a lawsuit in Kentucky if it is not registered. The LLC shall be allowed to defend its claim in case a dispute arises from any contractual arrangement.
Kentucky Consumer Protection Act
The Kentucky Consumer Protection Act oversees business activities and prohibits unfair, false, misleading, or deceptive business activities in the state of Kentucky. This Act declares unlawful and prohibits any unfair, false, misleading, or deceptive acts or practices in the conduct of any trade or commerce. The Attorney General of the State can enforce action against the violator to recover damages for breaches of this Act’s requirements under Section 367.190.
How Fast Can You Obtain EIN for Foreign LLC in Kentucky
An EIN for foreign LLC in Kentucky can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
Kentucky possesses a favorable business climate, attracting entrepreneurs from around the world to set up their operations and contribute to the state’s economy. The process of obtaining an EIN for foreign LLCs is generally straightforward, but it is important to be aware of the potential variables that may impact the timeline.
Timing may vary depending on your mode of application submission. One option is applying online through the Internal Revenue Service’s (IRS) website, which is available 24/7. This route can expedite the process significantly, allowing foreign LLCs to acquire their EIN promptly. However, it is crucial to ensure that all information provided in the application is accurate and up to date since any mistakes can potentially result in delays.
For a foreign LLC looking for a more personalized approach, reaching out to the IRS and submitting the application via mail or fax remains a viable option. Although this method provides flexibility by manually submitting all required documents, the duration of the process might be longer due to the inherent delays inherent with physical mail and communication.
Another essential consideration is gathering all necessary information before commencing the application process. To fulfill the requirements prescribed by the IRS, foreign LLCs must provide details about the nature of their business, names of any responsible parties, organizational structure, and more. By having this information readily available, an organization can speed up the application process further, minimizing potential delays.
It is also worth considering the holiday period and peak business seasons when estimating the timeline for obtaining an EIN. Federal holidays and the IRS’s busiest months can potentially cause processing delays, as the IRS handles a myriad of applications simultaneously. Organizations aiming to kickstart their operations in Kentucky in a timely manner might want to plan accordingly.
Moreover, it is imperative to verify the accuracy of all the information provided regarding federal and state tax obligations. Double-checking the filings and ensuring compliance is crucial to mitigate any potential problems or delays. This diligent attention to accuracy will not only expedite the processing time but also save foreign LLCs from unnecessary headaches or potential penalties.
In summary, the timeline for obtaining an EIN largely depends on various factors, such as the mode of application, accuracy of information provided, timing of application, and general periods of heightened application volumes. As a foreign LLC venturing into Kentucky, mitigating potential delays and submitting all required documents accurately and promptly are key steps in ensuring a swift acquisition of the EIN. By understanding the process and planning ahead, foreign LLCs can proactively set up their operations and lay a solid foundation for success in Kentucky.
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 Kentucky
One of the key questions that foreign LLC owners often have is how fast they can obtain an EIN for their business in Kentucky. The process of obtaining an EIN for a foreign LLC in Kentucky is generally straightforward and can be done relatively quickly. However, the exact timeline for obtaining an EIN may vary depending on your specific circumstances and the method you choose to apply for it.
There are several methods for obtaining an EIN for your foreign LLC in Kentucky. The most common way is to apply online through the IRS website. This method is usually the quickest and most convenient, allowing you to receive your EIN in a matter of minutes after completing the online application. Another option is to apply by fax or mail, which typically takes longer because of the processing time involved.
Regardless of the method you choose, there are a few key steps to keep in mind when applying for an EIN for your foreign LLC in Kentucky. First, you will need to have all the necessary information on hand, such as the legal name of your business, the address of your business location, and the names and addresses of the LLC members or owners. You will also need to provide a valid Taxpayer Identification Number (TIN) for the responsible party applying for the EIN.
It is important to note that as a foreign LLC owner, you may also need to provide additional documentation to support your EIN application. This may include documents such as a copy of your LLC formation documents, a Foreign qualification certificate, or a Certificate of Good Standing from your home country. These documents are necessary to verify the legitimacy of your business and ensure compliance with US tax laws.
Overall, the process of obtaining an EIN for a foreign LLC in Kentucky is relatively fast and straightforward, especially if you have all the necessary information and documentation ready. By being prepared and following the guidelines outlined by the IRS, you can easily obtain an EIN for your foreign LLC and start conducting business in Kentucky in no time. Obtaining an EIN is an essential step in ensuring that your foreign LLC operates legally and smoothly in Kentucky, so be sure to take the necessary steps to obtain yours promptly.
In Conclusion
Obtaining EIN for any Kentucky 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.