To obtain EIN for Nevada 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 Nevada 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 Nevada 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 Nevada–
- 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 Nevada
The Nevada Foreign LLC must register itself with the state of Nevada if it intends to transact its business in Nevada, according to Nevada’s LLC Act.
Transacting Business in The State of Nevada
To determine the subject of taxation by the foreign entities is another important aspect of business restrictions. According to state rules, the foreign LLCs must collect state sales taxes in their home state. To be liable to collect state sales tax on sales to its residents, a corporation must have a physical presence in—or a nexus with—the state. If a foreign LLC opens a store, an office, or a warehouse in Nevada, or hires a sales representative there, it is regarded to have a physical presence in Nevada.
Registering The Business
The foreign LLC must file a Nevada Qualification to Do Business in Nevada with the Nevada Secretary of State, New Filings Division, in order to register a foreign corporation in Nevada.
For LLCs, the Nevada Secretary of State does not require any documentation from the home state. However, the foreign entity must designate and keep a registered agent in Nevada on file at all times to act as their official communicator with the State Authorities.
Effect Of Non-Registration
Every foreign LLC conducting business in this state that fails to register with the Secretary of State faces a fine of $1,000 to $10,000, which can be collected in a court of competent jurisdiction. Any foreign LLC conducting business in this state without first registering with the Secretary of State is barred from bringing or maintaining any action, suit, or proceeding in any court in this state until it has done so.
Nevertheless, the non-registration of the LLC does not invalidate its contracts or preclude it from defending a lawsuit in the state.
Nevada Deceptive Trade Act
In Nevada, a deceptive trade is any action intended to deceive the consumer. The state has developed a comprehensive set of deceptive trade practices rules that cover a wide variety of topics and clarify the penalties that will be imposed if a violation occurs. The following are examples of such activities:
- Failure to notify customers about the product or service
- Making misleading claims about the capabilities of a product or service
- Presenting an item as fresh despite the fact that it has been used
Upon the Commissioner’s request, the Attorney General may file a lawsuit in the name of the State of Nevada against anybody who has engaged in deceptive commercial practices.
How Fast Can You Obtain EIN for Foreign LLC in Nevada
An EIN for foreign LLC in Nevada can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
Setting up a business entity, such as an LLC, in Nevada is a popular choice for both domestic and international entrepreneurs, given the state’s favorable business climate, beneficial tax structure, and renowned entertainment industry. However, those hailing from foreign lands may face additional challenges and bureaucratic hurdles when it comes to securing an EIN.
Obtaining an EIN for a foreign LLC in Nevada is a vital step that culminates in its ability to navigate tax obligations, open bank accounts, hire employees, and establish credibility with US clients and partners. It is no wonder that foreign business owners are eager to assess the speed and efficiency with which their EIN applications will be processed.
While individual experiences may undoubtedly vary, the general process for acquiring an EIN in Nevada for a foreign LLC follows a few familiar steps. Like any bureaucratic procedure, it requires attention to detail and patience. First and foremost, international business owners must ensure compliance with all US federal and state requirements related to establishing a business in Nevada. These include obtaining a registered agent, filing necessary documents with the Secretary of State, and complying with taxation laws.
Once all pre-requisites have been fulfilled, business owners can submit the necessary paperwork to the Internal Revenue Service (IRS), either through the mail or via an online application. While an online application is generally faster, it is essential to keep in mind that the IRS might require additional documentation and clarification, which can extend the processing time.
Many business owners find it expedient to engage the services of a qualified professional, such as an attorney or an accountant, who can navigate the process more efficiently. These professionals understand the complexities of registering foreign entities and possess the requisite knowledge to ensure submissions are complete and accurate, reducing the likelihood of delays caused by errors.
The speed of procuring an EIN for a foreign LLC depends on various factors, such as IRS efficiency, submission accuracy, document complexity, and the backlog of applications. While it is challenging to determine an exact timeline, as processing times differ from case to case, it is generally plausible to expect the EIN to be obtained within four to six weeks, or potentially longer during peak periods.
However, it is vital to remember that obtaining an EIN is just one of many critical steps when establishing a foreign LLC in Nevada. Timely completion of other legal and operational requirements is necessary to ensure a smooth launch and ongoing compliance. Therefore, foreign entrepreneurs should adopt meticulous planning and implementation to tackle all tasks related to establishing their business effectively.
In conclusion, the speed at which one can secure an EIN for a foreign LLC in Nevada is influenced by various factors, including completeness and accuracy of applications, pre-requisite processes, IRS procedures, and time of year. While estimates suggest a four to six-week timeframe, each case is unique, and engagement with qualified professionals can greatly enhance efficiency. Ultimately, obtaining an EIN is just one aspect of successfully establishing a foreign LLC in Nevada and needs to be approached within the broader context of entrepreneurial endeavors.
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 Nevada 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.
