To obtain EIN for Louisiana 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 LLC in Louisiana. 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 Louisiana
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 Louisiana 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 Louisiana–
- 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 Louisiana
To start a foreign LLC in Louisiana one has to follow some restrictions. These are general guidelines every foreign LLC has to follow while expanding its business to Louisiana. Here are some points to note,
Transacting Business In The State Of Louisiana
If the foreign LLC intends to transact business in Louisiana, then it must register the foreign company with the state, according to Louisiana’s Limited Liability Company Act.
Following the formation of LLCs, the issue of taxation must be addressed. Foreign LLCs are obligated to collect state sales taxes in their home state, according to state rules. A company must have a physical presence in—or a nexus with—the state in order to be liable to collect state sales tax on sales to its inhabitants. For instance, if a foreign LLC opens a store, an office, or a warehouse in Louisiana, or hires a sales representative there, it is regarded to have a physical presence in the state.
Registering The Business
As a foreign entity, the LLC must submit its application for incorporation paperwork with the Secretary of State Office in Louisiana. In addition, the LLCs must include proof of existence or a certificate of Good Standing with their application. This should be provided by the state in which the business LLC was originally registered.
Effect of Non Registration
If the Louisiana Foreign LLC is not registered under the State laws of Louisiana, then it can face the following situations:
- The business LLC shall not be permitted to file a lawsuit in the state in order to recover debts.
- Furthermore, such a business LLC is responsible for costs and penalties if it transacts or conducts business in Colorado without permission.
- In addition, if the LLC fails to acquire a certificate of authority, a member of the LLC does not become accountable for the LLC’s obligations.
The lack of registration, on the other hand, has no bearing on your LLC’s contracting actions in the state or defending a case in the state in case a dispute arises from a contract.
Deceptive Trade Practices
All unfair or deceptive trade practices or techniques of competition are illegal under the 1972 statute, which was designed after the Federal Trade Commission Act. The legislation is intended to provide a remedy to any party who has been harmed by such behavior, regardless of whether the affected claimant is a consumer or a businessperson. Any business that breaches any of the provisions of this Act may be subjected to judicial proceedings and other measures undertaken by the Attorney General.
How Fast Can You Obtain EIN for Foreign LLC in Louisiana
An EIN for foreign LLC in Louisiana can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
The question arises: How fast can one obtain an EIN as a foreign LLC in Louisiana? Well, the answer to this question may vary based on various factors and circumstances. A vital factor to consider is how the foreign LLC chooses to apply for an EIN.
Foreign LLCs have two options when it comes to obtaining an EIN – they can either apply online or by mail. Applying online tends to be a faster and more convenient option, but before taking this route, it is crucial to confirm eligibility with the IRS. The online application system is known as the EIN Assistant, and it allows eligible foreign LLCs to receive their EIN almost instantaneously. By providing the relevant information and completing the required steps accurately, companies can receive their EIN within minutes.
On the other hand, if a foreign LLC opts to apply by mail, the process can take considerably longer. Mailed applications generally involve more manual processing and, thus, are much slower compared to online applications. Additionally, the response time can be influenced by the IRS’s workload, which can vary based on different circumstances. It is recommended for foreign LLCs to allow several weeks for the processing of a mail-in EIN application. Planning way ahead and submitting the application well in advance can help avoid potential delays and ensure a smoother registration process.
That being said, it is important to note that obtaining an EIN is just one aspect of setting up a foreign LLC in Louisiana. Companies need to fulfill other statutory requirements as well. These include registering with the Louisiana Secretary of State, complying with any licensing and regulatory obligations specific to their industry, and potentially filing annual reports and tax returns. It is vital for foreign LLCs to consult legal and tax professionals to ensure compliance with all necessary requirements before commencing their business activities in the state.
In conclusion, the speed at which a foreign LLC can obtain an EIN in Louisiana depends on the chosen method of application. Applying online through the IRS’s EIN Assistant system is generally the fastest option, allowing for nearly instantaneous EIN issuance. However, if a foreign LLC opts for a mail-in application method, they should anticipate a longer processing time, potentially spanning several weeks, taking into account the intricacies of mail processing and the IRS’s workload. Additionally, it is vital for foreign LLCs to recognize that obtaining an EIN is just one step in the process of setting up a business in Louisiana and that adherence to other statutory requirements is also crucial. Seeking guidance from legal and tax professionals is highly recommended to ensure a smooth and compliant establishment of operations.
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.
Obtaining EIN for any Louisiana 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.