EIN for Maryland Foreign LLC – How to Obtain EIN For Foreign Entity

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To obtain EIN for Maryland 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 Maryland. 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 Maryland 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:

  1. 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. 
  2. 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.
  3. 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.
  4. 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.
  5. 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:

  1. 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.
  2. 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
  3. 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
  4. Ways to apply for EIN Maryland
    • 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 Maryland

To start a foreign LLC in Maryland LLCs have to keep a few points in mind. There are some general rules for LLCs to start their business in Maryland. Below are some of the points to note before you form a foreign LLC in Maryland,

Transacting Business In The State Of Maryland

According to Maryland’s Limited Liability Company Act, to start business operations in the State, the foreign entity must mandatorily register themselves with the Secretary of State Office, Maryland.

Further ahead, the taxation aspect needs to be determined by the firms. As per the State Regulations, foreign LLCs are required to collect state sales taxes in their home state. The foreign LLC shall be obligated to collect state sales tax on sales to its residents, when the corporation holds a physical presence in—or a nexus with—the state. In this case, a foreign LLC is considered to have a physical presence in Maryland if it opens a store, an office, or a warehouse there, or hires a sales representative there.

Registering The Business

The foreign LLC must file a Maryland Foreign Limited Liability Company Registration with the Maryland State Department of Assessments and Taxation, Corporate Charter Division, to register a foreign LLC in Maryland.

The Maryland State Department of Assessments and Taxation requires a Certificate of Good Standing or Existence issued by the home state in order to approve a foreign qualification application. In furtherance of the application, the foreign LLC must hire a registered agent in Maryland to act as their official communicator with the Secretary of State Office.

Effect Of Non-Registration

If the Foreign LLC does not register itself as per the Maryland State laws, then it may have to suffer through the following consequences:

  • Such a business LLC may not be permitted to file a lawsuit in the state or make legal representations before the Court of Law.
  • Such a foreign LLC may also be subjected to penalties and fines up to $200 imposed by the State Authorities for conducting any intrastate, interstate, or international activity in this state without registration.
  • Furthermore, any member and agent of a foreign LLC that does business in Maryland without first registering is guilty of a misdemeanor punishable by a fine of up to $1,000.
  • However, not being registered does not render any of your LLC’s contracts null and void, nor does it prevent your LLC from defending a lawsuit filed in the state.

Maryland Consumer Protection Act

The Maryland Consumer Protection Act prohibits any type of deceptive trade practices by business LLCs in the State. The harmed consumers possess a private right of action against prohibited conducts such as fraud and deception. A consumer who is defrauded by a business enterprise as a violation of this Act can approach the Consumer Protection Division with their complaint. A person who has violated any of the provisions of this Title may be sued by the Attorney General for an injunction.

How Fast Can You Obtain EIN for Foreign LLC in Maryland

An EIN for foreign LLC in Maryland can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.

If you’re a foreign company looking to do business in Maryland, you will need to obtain the EIN. This eight-digit identification number is useful for everything from payroll to bank account opening. The best way to get the EIN is to apply for one online. In fact, most businesses are required to obtain this type of number.

In addition to the EIN, you will need to register your LLC in Maryland. These forms are available on the Maryland State Department of Assessments and Taxes website. You will also need to pay the $100 registration fee. For businesses that already have an LLC in the state, there are expedited filing options. It is usually a good idea to find a third party to handle your registration because a handwritten submission is likely to be rejected.

Fortunately, there are many programs and incentives offered by the state of Maryland for aspiring entrepreneurs. However, if you’re not aware of what your business needs to qualify for these discounts, you may be missing out. A qualified tax professional can help you understand these programs and find the best tax break for your particular situation.

You can also save time by applying for your EIN online. Online processing is fast and can take as little as a few minutes. Alternatively, you can complete the application by mail. Once you’ve completed it, you will receive the EIN in the mail in a few weeks.

If you’re a foreign LLC and don’t have a registered office in Maryland, you will need to establish one. You will be required to set up a Maryland address for your business and hire a Marylander to be your registered agent. Depending on your status, you may be required to pay a fine of up to $1,000 per member.

You can save a lot of money by registering your Maryland LLC online. When you do, you will receive an automatic rate of expedited filing. Additionally, you can notify SDAT by completing a form on their website.

Obtaining the EIN for a foreign LLC in Maryland is easy. You can use the Internet or your local office. Regardless of how you choose to do it, you’ll need to fill out the forms correctly.

The most important thing to remember when registering a Maryland LLC is that it can’t have a name similar to that of another company already in the state. This is because it can be confusing to consumers. Also, you can’t have a name that includes words that are restricted by the state, such as “limited” or “limited liability”. While there are exceptions to this rule, you don’t want your business to have a name that smacks of deception.

In order to receive the EIN for a foreign LLC in the state of Maryland, you will need to apply for the requisite certificate of good standing. This certificate, which is also called the EIN, is the same as the Social Security number for your business.


How to obtain EIN for foreign LLC in Maryland?

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.

Do I need to obtain EIN for foreign LLC always?

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.

Are EIN and TIN the same or different?

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.

Do I need a Third Party Designee to obtain EIN for Foreign LLC?

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 Maryland 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.

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