To obtain EIN for North Carolina 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 an LLC in North Carolina. 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 North Carolina 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 North Carolina–
- 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 North Carolina
According to North Carolina’s Limited Liability Company Act, foreign LLCs must register their foreign corporation with the Secretary of State Office, North Carolina to transact business in the state.
Transacting Business In The State of North Carolina
The subject of taxation of the foreign LLCs should also be duly considered after the incorporation of LLCs. According to state rules, foreign LLCs must collect state sales taxes in their home state. A company must have a physical presence in—or a connection 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 North Carolina, or hires a sales representative there, it is regarded to have a physical presence in the state.
Registering The Business
To register a foreign business LLC in the State, the LLC must submit a North Carolina Certificate of Authority to the Corporations Division of the North Carolina Secretary of State.
The North Carolina 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 North Carolina on file at all times. In North Carolina, annual reports are due 3.5 months following the end of the tax year, which is generally April 15th.
Effect Of Non-Registration
A foreign LLC doing business in North Carolina shall be prohibited from filing any action, suit, or proceeding in the state until it has registered and paid all fees for the time it did business there without being registered. The LLC will also be responsible for fees, taxes, and penalties. A civil penalty of up to $10 per day for each day business is transacted without a certificate of authorization, up to a maximum of $1,000 per year, can be imposed on such business LLCs.
However, the lack of a certificate of authority has no bearing on your LLC’s contracts or its ability to defend a case in North Carolina.
North Carolina Deceptive Trade Practices Law
North Carolina, unlike many other states, does not follow the Uniform Deceptive Trade Practices Act. Unfair methods of competition in or influencing business; and Unfair or deceptive actions or practices in or affecting commerce are among the behaviors that are prohibited under North Carolina’s deceptive trade practices statutes.
A defrauded consumer can sue a violation in civil court, and the State Attorney General can prosecute them in civil court.
How Fast Can You Obtain EIN for Foreign LLC in North Carolina
An EIN for foreign LLC in North Carolina can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
Obtaining an Employer Identification Number (EIN) for a foreign limited liability company (LLC) registered in North Carolina can be a lengthy process, but with the right steps, it can be done fairly quickly. In order to obtain an EIN, the foreign LLC must first be registered with the North Carolina Secretary of State. Once the company is registered, the business can apply for an EIN with the Internal Revenue Service (IRS).
The first step in obtaining an EIN for a foreign LLC registered in North Carolina is to register the business with the state. This can be done online through the North Carolina Secretary of State website. The process requires the completion of a registration form, which includes information about the business and its owners. Once the form is submitted, it must be approved by the state before the LLC can be recognized as a legal business in North Carolina. This process can take a few days or weeks, depending on the complexity of the business structure and the speed of the state’s review process.
Once the business is registered with the state, the next step is to apply for an EIN with the IRS. This can be done online, by mail, or by fax. To apply online, the business must first create an online account with the IRS. This account will store the business’s personal information, allowing them to access the form needed to apply for an EIN. The form must be completed and submitted through the IRS website, and the EIN will be issued within minutes.
The other two methods of obtaining an EIN, by mail and fax, can take a bit longer. To apply by mail, the business must complete a paper form and mail it to the IRS. This process can take up to four weeks, depending on how quickly the IRS processes the form. To apply by fax, the form must be faxed to the IRS and the EIN will be issued within four business days.
Overall, the process of obtaining an EIN for a foreign LLC registered in North Carolina can vary in time, depending on which method is used to apply. Applying online is the fastest method, as the EIN can be issued almost immediately. Applying by mail or fax can take up to four weeks or four business days, respectively. But with the right steps, the process can be completed fairly quickly.
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 North Carolina 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.