To obtain EIN for Mississippi 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 Mississippi. 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 Mississippi 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 Mississippi–
- 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 Mississippi
Before you start your foreign LLC you must know the guidelines of transacting business in Mississippi. These are general guidelines and every LLC has to follow them in order to form a foreign LLC in Mississippi.
Transacting Business In The State of Mississippi
Foreign LLCs must register their foreign corporation with the State of Mississippi if they are transacting business” in Mississippi, according to Mississippi’s LLC Act.
Post the registration of LLCs; the taxation obligation should also be clarified. According to state rules, foreign LLCs must collect state sales taxes in their home state. A company must have a physical presence in—or a connection with—the state to be liable to collect state sales tax on sales to its inhabitants. If a foreign LLC opens a store, an office, or a warehouse in Mississippi, or hires a sales representative there, it is regarded to have a physical presence in Mississippi.
Registering The Business
A foreign LLC must file a Mississippi Certificate of Authority with the Mississippi Secretary of State in order to register in Mississippi.
The Mississippi Secretary of State requires a Certificate of Existence or Good standing issued by the home state in order to approve a foreign qualification application. In addition, a foreign LLC must also designate and keep a registered agent in Mississippi on file at all times.
Effect Of Non-Registration
A foreign LLC conducting its business in this state is prohibited from bringing any action, suit, or proceeding in any court in Mississippi unless it has registered. However, not having a proper registration does not invalidate any of your LLC’s contracts or prevent your LLC from defending Mississippi litigation.
A foreign limited liability company member is not accountable for the foreign limited liability company’s debts, obligations, or liabilities just because the foreign limited liability company did business in this state without being registered.
Mississippi Deceptive Trade Act
In line with the other State, Mississippi has also incorporated the Uniform Deceptive Trade Practices Act into their state laws. In Mississippi, false and deceptive trade practices are forbidden. Any individual who breaches the provisions of an injunction will face a civil penalty of not more than $10,000 per violation. The Attorney General may prosecute any offender of the laws in the name of the state.
How Fast Can You Obtain EIN for Foreign LLC in Mississippi
An EIN for foreign LLC in Mississippi can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
One of the key factors impacting the speed of acquiring an EIN is ensuring that all necessary information and documentation are prepared beforehand. This documentation includes details such as the legal name of the foreign LLC, the responsible party’s name and Social Security Number or Individual Taxpayer Identification Number (ITIN), and other relevant information. Collecting and organizing these documents prior to starting the application process ensures a smoother and quicker experience.
The quickest way to apply for an EIN is online through the Internal Revenue Service (IRS) website. Typically, the online application process is straightforward and allows the foreign LLC to receive its EIN immediately after completing the application. The advantage of this method is that it significantly reduces the time and effort involved in application processing, expediting the overall process of obtaining an EIN.
However, sometimes foreign LLCs face specific circumstances or complications, resulting in a delay in the EIN acquisition process. Staying informed about any such possible hindrances allows businesses to proactively address any issues or special requirements well in advance. One of the possible hurdles a foreign LLC may encounter is the need for a responsible party with a Social Security Number. In case the foreign LLC lacks a responsible party with an SSN, alternative solutions such as applying for an ITIN should be pursued, which may require additional processing time.
Occasionally, the time required to obtain an EIN can differ based on the volume of applications being processed by the IRS. During peak seasons or times of increased demand, the processing time may extend beyond expectations. Consequently, it is important to maintain realistic expectations while allowing ample time for the process to unfold. One may consider undertaking preliminary research to determine if any factors are influencing the current processing speed and plan accordingly, ensuring sufficient margin for any potential delays.
In conclusion, while the speed at which an EIN can be obtained for a foreign LLC in Mississippi relies on various factors, there are certain measures that businesses can implement to expedite the process. By meticulously preparing all required documentation, applying online through the IRS website, and proactively addressing any complexities or delays that may arise, foreign LLCs can optimize their chances of obtaining an EIN swiftly. Nonetheless, acknowledging potential obstacles and allowing sufficient time for processing is fundamental for effectively navigating the EIN acquisition journey, facilitating the entry and development of foreign businesses in the state.
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.
In Conclusion
Obtaining EIN for any Mississippi 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.
