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.
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 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:
- 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 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.
When it comes to starting a business in Montana, one of the first important steps is obtaining an Employer Identification Number (EIN) for your Foreign Limited Liability Company (LLC). An EIN is a nine-digit number assigned by the Internal Revenue Service (IRS) and is used to identify a business entity for tax purposes. An EIN is also used to open a business bank account, obtain business licenses, or hire employees.
The process of obtaining an EIN for a Foreign LLC in Montana is fairly straightforward and can be done in a matter of days. The first step is to complete the Form SS-4, Application for Employer Identification Number. This form can be found on the IRS website or obtained from a Montana office of the IRS. The form must include the name and address of the Foreign LLC, the nature of the business, the address of the principal place of business, the name of the responsible party, and the date the Foreign LLC was formed.
Once the Form SS-4 has been completed and submitted, the IRS will review the application and issue an EIN. Depending on the type of Foreign LLC, the IRS may require additional information before issuing an EIN. For example, if the Foreign LLC is an offshore entity, additional paperwork may be needed. Additionally, if the Foreign LLC is a multi-state entity, the IRS will require proof that the LLC is registered in each state in which it operates.
Once the EIN has been issued, the Foreign LLC will need to register with the Montana Secretary of State. This can be done by submitting the appropriate documents and the appropriate fee. Once the documents have been submitted, the Secretary of State will review the paperwork and issue a Certificate of Good Standing. This document is proof that the Foreign LLC is in compliance with all state laws and regulations.
Finally, the Foreign LLC will need to register with the Montana Department of Revenue. This can be done by filing the appropriate forms and paying the relevant fees. Once the forms have been submitted, the Department of Revenue will issue the Foreign LLC a Montana Business License. This license is proof that the Foreign LLC is in compliance with all state and federal tax laws.
The entire process of obtaining an EIN for a Foreign LLC in Montana can typically be completed within a few days. Depending on the complexity of the application, the time frame can vary. However, the process is relatively straightforward and can be completed quickly. Once the EIN has been obtained, the Foreign LLC will be able to open a business bank account, obtain business licenses, or hire employees.
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 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.