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


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To obtain EIN for Nebraska 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 Nebraska 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 Nebraska 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 Nebraska
    • 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 Nebraska

To transact business operations in the State of Nebraska, the foreign business LLC must register themselves with the Nebraska Secretary of State Office, according to Nebraska’s LLC Act.

Transacting Business In The State of Nebraska

The issue of taxation must be addressed post the institution of LLCs. According to state rules, foreign LLCs must collect state sales taxes in their home state. A corporation must have a physical presence in—or a nexus with—the state to be liable to collect state sales tax on sales to its residents. If a foreign LLC opens a store, an office, or a warehouse in Nebraska or hires a sales representative there, it is regarded to have a physical presence in Nebraska.

Registering The Business

The foreign LLC must file an Application for Certificate of Authority Foreign Limited Liability Company on the Nebraska Secretary of State web portal to register a foreign LLC in Nebraska.

The Nebraska Secretary of State requires a Certificate of Good Standing or its equivalent from the home state in order to approve a foreign qualification application. The foreign entity must also appoint a registered agent in Nebraska to act as their official point of communication with the State Authorities.

Effect Of Non-registration

  • A foreign LLC conducting business in this state without a certificate of authority shall lose its right to legal representation in the Court of Law. It will not be permitted to file a lawsuit in any court in this state until it receives one.
  • Such a foreign LLC shall also face a civil penalty of $500 each day, up to a maximum of $10,000 per year.
  • The LLC’s members and management shall not be held accountable for the company’s debts, obligations, or other liabilities just because the firm did business in Nebraska without a certificate of authority.
  • However, the lack of a Certificate of Authority has no bearing on the validity of the  LLC’s contracts or its ability to defend a case in Nebraska.

Nebraska Uniform Deceptive Trade Act

The Uniform Deceptive Trade Practices Act, which identifies misleading and fraudulent advertising as deceptive trade practices, has been implemented by Nebraska. A person who is likely to be “harmed” as a result of dishonest business conduct can file a private lawsuit against the alleged offender. The state’s Attorney General may issue a cease-and-desist order or take other legal action against violators.

How Fast Can You Obtain EIN for Foreign LLC in Nebraska

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

If you are a foreign business or LLC that wants to operate in Nebraska, you must first acquire an Employer Identification Number, or EIN. This is a nine-digit number issued by the Internal Revenue Service to help identify your business and to make it easier to file tax returns. The IRS uses the number to oversee your financial affairs and supervise your business.

The first step to obtaining an EIN is to get a certificate of good standing, or CGS, from your home state. Once you have this, you can submit it to the Nebraska Secretary of State. In addition, you will need to provide your primary business address, as well as the address of the registered agent in Nebraska.

Your home state will also have specific legal requirements that you must follow. For example, some states require you to incorporate with a specific form, while others have special business permits you need to obtain. To check out these requirements, visit your state’s website and look for a section on “Regular and Special LLCs”.

When you have established your LLC, you will need to make a formal notice of its formation. You can pay a fee for this, depending on the word count of the document. Alternatively, you can use a service that will handle this for you. Many professional services, such as Incfile, can handle this part of the process for you.

It is a good idea to have a professional guide you through the process of forming an LLC in Nebraska. A DIY filing process can be complicated and can lead to delays. If you are a novice entrepreneur, you may be hesitant to undertake such a project. However, with new technology, you can complete the application online. Whether you choose to hire a service or do it on your own, the end result is the same.

Choosing a business name is an important step in forming an LLC in Nebraska. You must find a name that is unique and contains one of the abbreviations mentioned in the company’s operating agreement. Also, you should avoid using words that could imply that the company is a government agency. Restrictive words, such as “limited” and “limited liability”, can add an extra layer of paperwork to the filing.

Next, you will need to publish a notice of your organization for three consecutive weeks. Depending on the newspaper, you might have to pay a separate publication fee. These fees are deductible and can be paid as part of your yearly business taxes.

The next step is to fill out Form SS-4 from the IRS. The IRS will mail you a confirmation letter within a few days. Alternatively, you can fill out the form on the IRS’s website.

Finally, you will need to fill out an affidavit of publication. Several Nebraska newspapers have a free or low-cost form that you can use to get an affidavit of publication.

With an EIN, your business will be able to open a bank account, hire employees, and file tax returns with the IRS. It will also allow you to conduct business in more than one state.

FAQ

How to obtain EIN for foreign LLC in Nebraska?

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 Nebraska 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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