To obtain EIN for Maine 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 Maine 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?
- What is an EIN (Employer Identification Number)?
- EIN for a Foreign Entity or Foreign LLC
- Restriction In Business For Foreign Entities In Maine
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 Maine 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 Maine–
- 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 Maine
When you start an LLC in Maine you have to follow certain guidelines. The same thing is applied to foreign LLCs. If you are willing to start a foreign LLC in Maine, you must know the following points,
Transacting Business In the State Of Maine
In case a Maine Foreign LLC wants to transact its business operations in Maine then it shall foremost register itself with the Secretary of State Office, under Maine’s Limited Liability Company Act.
For the collection of State Sales Tax, the State Regulations determine the position for foreign LLCs. According to state regulations, foreign LLCs are required to collect state sales taxes in their home state. However, such foreign LLCs are liable to collect state sales tax on sales to their residents, when it has a physical presence in the state. In the State of Maine, a foreign LLC is considered to have a physical presence in Maine if it installs a store, an office, or a warehouse there, or hires a sales representative there.
Registering The Business
The foreign LLC must file the Application for Authority with the Maine Secretary of State, Division of Corporations, to register itself in Maine. The application must also include a Certificate of Existence or Good Standing, duly authenticated by the Secretary of State Office of the Home State. The LLC must also hire a Registered Agent in the State to handle their official paperwork with the State Office.
Effect of Non-Registration
If the Foreign LLC is not registered under Maine law, then it may suffer through the following consequences:
- In order to recover debts, the business LLC will not be allowed to initiate a case in the state. The right to legal representation shall be forfeited by such a non-registered foreign LLC.
- A civil penalty of $500 is imposed on a foreign limited liability company for each year it operates without registration.
- The Attorney General can initiate an action against such violators, and the civil penalty may be recovered.
- However, the lack of a proper assertion of authority has no bearing on such LLC’s actions (such as contracting) or its ability to defend a case in the state.
- A member or agent of a foreign limited liability company is not accountable for the foreign LLC’s debts, obligations, or other liabilities just because the LLC conducts business in this state without a statement of foreign qualification.
Maine Unfair Trade Practice Act
The Maine Unfair Trade Practices Act (UTPA) protects its consumers from businesses that engage in unfair or misleading business practices. It prohibits unfair and deceptive trade or commerce practices by the business LLCs.
When the Attorney General determines that enforcement action is in the public interest, he or she is responsible for enforcing the law. Consumers can also file their own UTPA lawsuits in Small Claims Court, District Court, or Superior Court to seek remedy against such business LLCs.
How Fast Can You Obtain EIN for Foreign LLC in Maine
An EIN for foreign LLC in Maine can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
Forming a limited liability company (LLC) in Maine can be an excellent way for foreign investors to establish a presence in the United States. An LLC offers several advantages, such as limited personal liability for business debts and taxes, and flexible management structures. But before a foreign LLC can start doing business in Maine, it needs to obtain an Employer Identification Number (EIN). Fortunately, the process of obtaining an EIN for a foreign LLC in Maine is relatively straightforward and can be completed in just a few days.
The first step in obtaining an EIN for a foreign LLC in Maine is to obtain a Certificate of Authority from the Maine Secretary of State. This is a document that establishes the LLC as an entity in Maine, and it must be filed with the Maine Secretary of State before the LLC can apply for an EIN. The Certificate of Authority must include the LLC’s name, address, and a brief description of the business activities to be conducted in Maine. The application fee for the Certificate of Authority is $125, and the processing time is usually around two to three weeks.
Once the Certificate of Authority has been obtained, the LLC can then apply for an EIN from the Internal Revenue Service (IRS). The application can be completed online, and the LLC will need to provide its name, address, and a description of the business activities it will be conducting in Maine. It is important to note that the LLC must also provide its foreign address, as the IRS requires this information in order to issue an EIN. Once the application is submitted, the LLC will receive its EIN within one business day.
Once the LLC has obtained its EIN, it can then start doing business in Maine. This includes opening a bank account, registering with the Maine Department of Revenue, and filing state and federal taxes. It is important to note that the LLC may also need to obtain a Maine business license, depending on the type of business activities it will be conducting.
In conclusion, the process of obtaining an EIN for a foreign LLC in Maine is relatively straightforward and can be completed in just a few days. The LLC first needs to obtain a Certificate of Authority from the Maine Secretary of State, and then it can apply for an EIN from the IRS. Once the EIN has been obtained, the LLC can then start doing business in Maine.
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 Maine 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.