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


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To obtain EIN for Montana 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 Montana 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. 

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 Montana 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 Montana
    • 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 Montana

If a Montana Foreign Business LLC plans to initiate and transact its business in Montana, then it must primarily register itself with the Montana Secretary of State Office, in accordance with Montana’s Limited Liability Company Act.

Transacting Business In The State of Montana

Post the registration and incorporation of LLCs, the legal position with respect to the collection of taxation must be discussed. Generally, foreign LLCs are obligated to collect state sales taxes in their home state, as per the state rules. However, to collect State Sales Tax in Montana, the foreign LLC must have a physical presence in 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 Montana, or hires a sales representative there, it is regarded to have a physical presence in the state.

Registering The Business

The Montana Foreign LLC must file a Montana Certificate of Authority of Foreign Limited Liability Company Application with the Montana Secretary of State to register a foreign LLC in Montana. As a part of the application, the State requires a Certificate of Good Standing or its equivalent from the home state. The foreign entity must designate and keep a registered agent in Montana at all times to act as the official communicator of the firm.

Effect Of Non-registration

Failure to foreign qualify before launching a business in Montana has far-reaching ramifications that are significantly more expensive than just registering. If the foreign does not meet the international qualification requirements, the company shall face the following challenges:

  • Such a business LLC won’t be able to file or sustain litigation in Montana courts.
  • A Montana court can order any ongoing actions or procedures to stay.
  • The LLC will be fined $5 every day that it does unlicensed business in the state, with a maximum fine of $1,000 per year.
  • Transacting business in Montana without authorization, on the other hand, will not invalidate any existing contracts or prevent you from defending a case in Montana court.

Montana Deceptive Trade Practices Laws

Montana law protects its consumers under a broad prohibition on “unfair competitive strategies and unfair or deceptive acts or activities” by the business entities. False advertising, deceptive sales techniques, consumer deception, and attempts to stifle free and fair competition are all prohibited. There are also other safeguards in place. Individual consumers who are likely to be harmed and the state attorney general may file a case in state court.

How Fast Can You Obtain EIN for Foreign LLC in Montana

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

Getting an Employer Identification Number, or EIN, for a foreign LLC is not a difficult task. However, it can take between 7 and 10 days for the process to be completed. It’s also important to remember that you’ll need to provide certain documents when applying for an EIN.

The first step is choosing a name for your business. You’ll need to make sure that the name you choose isn’t already taken by another Montana business. If it is, you may need to reserve the name for up to 120 days before you can register the company.

Next, you’ll need to register your LLC with the Montana Secretary of State. To do this, you’ll need to create an account with ePass. This will allow you to file documents online. Once you’ve established your account, you’ll be able to order your certificate of formation.

In addition to obtaining an EIN, you’ll need to designate a registered agent, or statutory agent. A registered agent will accept legal mail on your behalf and serve legal process in your name. Your registered agent must be a resident of the state of Montana. They must also maintain a physical address in the state.

Finally, you’ll need to file Articles of Organization with the Montana Secretary of State. This document outlines your company’s operations and ownership. The secretary of state reviews the Articles of Organization and issues a Certificate of Formation. Eventually, the Articles of Organization become the official operating documents of the LLC.

As part of the application, you’ll need to pay a filing fee. Depending on the type of entity you are forming, you may need to pay more than once. For example, if your business is a series LLC, you’ll need to pay a $50 filing fee for each series member. Similarly, you’ll need to pay periodic fees to the Montana Secretary of State.

After completing the application, you’ll need to sign the Articles of Organization. You’ll need to include information such as the names of the members, the business’s legal address, and its abbreviations. Other information that may be required will depend on the industry the business operates in.

In addition to the requirements listed above, you’ll need to purchase workers’ compensation insurance. The federal government requires that you have a federal Employer Identification Number to hire employees and to file federal taxes. While you don’t have to have an EIN, it’s a good idea to get one.

When registering your foreign LLC in Montana, you’ll need to provide a certificate of good standing from your home state. This can be obtained by filling out a Form-SS4. Alternatively, you can file your foreign qualification by telephone.

You should also consider a business license and an operating agreement. These forms outline the operation of your business and will be helpful in the event of a dispute. An operating agreement can even protect your personal assets in the event of a lawsuit. Some financial institutions will require you to have an LLC agreement before they will open an account for you.

FAQ

How to obtain EIN for foreign LLC in Montana?

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 Montana 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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