EIN for New York Foreign LLC – How to Obtain EIN For Foreign Entity


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To obtain EIN for New York 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 New York 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 New York 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 New York
    • 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 New York

If a foreign business LLC wants to start its business operations in the State of New York, it must foremostly register itself with New York.

Transacting Business In The State Of New York

After incorporating LLC in New York, its taxation obligations should also be clarified. According to state rules, foreign LLCs must collect state sales taxes in their home state. To be liable to collect state sales tax on sales to its residents, the foreign LLC must have a physical presence in—or a connection with—the state. If a foreign LLC opens a store, an office, or a warehouse in New York, or hires a sales representative there, it is regarded to have a physical presence there.

Registering The Business

Section 1304 of the Business Company Law allows a foreign business corporation to seek authorization to do business in New York by filing an Application for Authority.

The New York State Department of State requires a certificate of good standing or equivalent from the home state to approve a foreign qualification application. The foreign entity must designate and keep a registered agent in New York on file at all times. A New York Secretary of State can be nominated as Registered Agent. All corporations and limited liability companies in New York must file a New York Biennial Report every other year.

Effect Of Non-Registration

If the Foreign LLC is not registered with the New York Secretary of State, it shall lose its right to initiate a lawsuit to recover debts in the state. However, the lack of a certificate of authority has no bearing on your LLC’s contracts or its ability to defend a case in New York.

Also, because the LLC is conducting or has done business in New York without a certificate of authority, a member of management of the LLC is not accountable for the LLC’s contractual commitments or other liabilities.

New York Deceptive Trade Act

New York General Business Legislation regulates deceptive activities and practices. Accordingly, it is illegal for business entities to make misleading advertising in the conduct of their business and trade activities in New York. An Attorney General has the authority to file a lawsuit against any person, company, corporation, or agency who violates any of the requirements of this Article and is entitled to damages.

How Fast Can You Obtain EIN for Foreign LLC in New York

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

If you own a foreign limited liability company and you’re looking to do business in the state of New York, you may want to apply for an EIN. EINs are federal tax identification numbers for businesses, and most LLC owners must obtain one. Some banks and other financial institutions require you to get an EIN if you plan on opening a bank account. You can find more information about obtaining an EIN at the IRS website.

There are many ways you can obtain an EIN, but if you’re going to do so, you should choose a method that is fast and reliable. For example, a digital application has virtually no delay, and the process is much faster than a mail application.

Typically, you’ll be required to pay a small fee to register as a foreign LLC. The cost varies, however, depending on the state you’re starting your business in. In addition, you’ll need to submit an application for authority. This requires you to publish a notice of your application in a local newspaper in your state. When submitting the application, you’ll also need to attach a Certificate of Existence, which is a certificate of good standing for your LLC.

Another requirement is to hire a registered agent. These are professionals who can accept legal documents on your behalf. While it’s not mandatory, you may want to do this in order to save yourself time and money. However, you should be careful about hiring the wrong person for this task.

Obtaining an EIN for a foreign LLC in New York can take up to four months to complete. The reason for this is that the New York Department of State has an extensive database of business names. As such, a name that’s not in their database could mean your LLC won’t be accepted as a business entity.

You’ll also have to file articles of organization and an affidavit of publication. This is part of the formation process, and you can do both online or by postal mail. Alternatively, you can opt for a more comprehensive package, such as the Priority Deluxe plan, which adds a custom member ledger and embossed meeting minute book. It costs $425 for these services.

An EIN is a nine-digit number that is used by the Internal Revenue Service to identify business entities. It can also be used as an employee identification number by some corporations. Usually, there is a limit on the number of EINs you can obtain each day. You can find out more about EIN issuance procedures on the Responsible Parties and Nominees webpage of the IRS.

Having an EIN for your new business will help you keep up with filing your taxes. In addition, you’ll need to obtain an IRS employer identification number if you’re operating as a multi-member LLC. Generally, an EIN is not required for a single-member LLC. Whether you decide to get an EIN or not depends on the size of your business and the type of business you operate.

FAQ

How to obtain EIN for foreign LLC in New York?

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 New York 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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