EIN for North Dakota Foreign LLC – How to Obtain EIN For Foreign Entity


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To obtain EIN for North Dakota 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 North Dakota 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 North Dakota 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 North Dakota
    • 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 Dakota

When a foreign business LLC transacts its business in North Dakota, then it must register itself with the Secretary of State Office, North Dakota, according to North Dakota’s Limited Liability Company Act.

Transacting Business In The State Of North Dakota

After the incorporation of LLCs, the subject of taxation of the foreign business LLCs must also be addressed. 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 inhabitants. If a foreign LLC opens a store, an office, or a warehouse in North Dakota or hires a sales representative there, it is regarded as having a physical presence.

Registering The Business

The foreign LLC must file a North Dakota Certificate of Authority Foreign Limited Liability Application with the North Dakota Secretary of State to register a foreign LLC in North Dakota.

The Secretary of State of North Dakota requires a certificate of good standing or equivalent issued by the home state to approve a foreign qualification application. Within 90 days, the certificate must be current. In order to be in good standing, a foreign entity must designate and keep a registered agent in North Dakota on file at all times to act as the official communicator of the Company with the State Authorities.

Effect Of Non-Registration

A foreign LLC doing business in North Dakota is prohibited from filing any action or suit until it has duly registered and paid all fees for the time it did business there without being registered.

It might also face a civil penalty of up to $5,000 and be barred from conducting business in the state until the fines are paid. A civil penalty of up to $1,000 will be imposed on any LLC governor, member, or agent that permits directs, or engages in the conduct of business in North Dakota without a certificate of authority.

However, the lack of a certificate of authority has no bearing on the LLC’s contracts or its ability to defend a case in North Dakota.

North Dakota Consumer Protection Act

In conjunction with the sale or advertisement of products, the Consumer Protection and Antitrust Division (CPAT) of the North Dakota Attorney General enforces the state’s deceptive trade practices statutes. Consumer fraud crimes are investigated and prosecuted by the division, which also resolves individual consumer complaints and created public awareness on how to prevent being a victim of fraud. CPAT is the state’s clearinghouse for identity theft prevention, complaints, and victim aid, as well as enforcing the state’s Do-Not-Call legislation.

The attorney general, the state’s attorney, and anybody who has been harmed may file a lawsuit in state court.

How Fast Can You Obtain EIN for Foreign LLC in North Dakota

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

Setting up a business can be an exciting but daunting endeavor, especially when it comes to navigating through the legal technicalities. The process can become even more complex for foreign Limited Liability Companies (LLCs) trying to establish their presence in North Dakota. One critical aspect that foreign LLCs must tackle is obtaining an Employer Identification Number (EIN).

The EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify businesses for tax purposes. It is essentially the equivalent of a social security number for a company. While it may seem like a straightforward task for local businesses, the process for foreign LLCs adds an extra layer of complexity and potential delays.

In North Dakota, the procedure for obtaining an EIN as a foreign LLC entails a multifaceted approach. First and foremost, it is crucial to understand the importance of having a reliable registered agent. A registered agent acts as the legal representative of the foreign LLC in North Dakota and is responsible for receiving important documents and communication on behalf of the company. Without a registered agent, the process of obtaining an EIN can face significant setbacks.

Once a registered agent is established, the next step is to complete and submit the appropriate forms to the IRS. One key form in this process is the SS-4, which gathers necessary information about the LLC, its owners, and the nature of its business. Providing accurate information and ensuring that all required fields are properly completed is essential to avoiding delays in the EIN application process.

Furthermore, it is crucial to remember that obtaining an EIN for a foreign LLC in North Dakota involves a coordination process between the IRS and the respective state authorities. This coordination ensures compliance with both federal and state regulations. Though these additional steps might prolong the time required to obtain the EIN, they are essential to facilitate the smooth running of the business.

The processing time for an EIN application can vary. While the IRS aims to process applications promptly, various factors can affect the overall timeline. Historically, it could take several weeks for an EIN to be issued. However, as bureaucratic processes streamline and technology advances, the timeframe has generally decreased. Yet, it is essential for foreign LLCs to allocate substantial time for the EIN to be processed, preventing undue frustration.

It is prudent for foreign LLCs considering expanding their operations in North Dakota to plan accordingly in advance. Familiarizing themselves with the EIN application process, engaging a registered agent, and ensuring proper completion of the necessary forms will contribute to a smoother and more expedient experience. Patience and preparedness are key when it comes to navigating the legal maze of establishing and operating a foreign LLC in North Dakota.

In conclusion, the process of obtaining an EIN for foreign LLCs in North Dakota may present extra hurdles and potential delays compared to domestic businesses. However, by understanding the intricacies, allocating time for processing, and engaging reliable intermediaries, foreign LLCs can overcome these challenges. It is important to stay vigilant, prepared, and patient in this endeavor, as properly obtaining an EIN is vital to operate legally and efficiently while conducting business in the state.

FAQ

How to obtain EIN for foreign LLC in North Dakota?

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.

How Fast Can You Obtain Ein for Foreign LLC in North Dakota

It is important to note that the timeline for obtaining an EIN for a foreign LLC can vary depending on various factors, such as the efficiency of the Internal Revenue Service (IRS) and the accuracy of the information supplied by the LLC during the application process. While some businesses may experience a swift approval, others may encounter unexpected delays, leading to frustration and unnecessary roadblocks.

One crucial step in obtaining an EIN for a foreign LLC in North Dakota is filling out the appropriate paperwork. Such documents typically include Form SS-4, Application for Employer Identification Number, where businesses provide vital details about their operation, purpose, and structure. It is crucial to pay careful attention to accuracy while filling out these forms, as errors or incomplete information may lead to processing delays and additional correspondence with the IRS.

After submitting the application, businesses have the convenience of choosing between several application methods. Traditionally, applicants could complete and mail the relevant paperwork to the IRS’s campus in Philadelphia and wait for their EIN to arrive by mail. This process, although effective, necessitates a more extended period due to logistical procedures.

However, today’s technological advancements have provided businesses with a faster route to obtaining an EIN. Online application through the IRS website has grown increasingly popular and efficient. Foreign LLCs in North Dakota can complete the EIN application online, providing immediate turnarounds in some cases.

While electronic submission offers a more rapid issuance of EINs, it is essential to bear in mind that an LLC may need to wait for confirmation from other relevant legal entities. For instance, foreign LLCs seeking EINs for the purposes of opening a bank account or filing taxes should consider that these institutions might have their own processes to validate and verify both the LLC and the EIN.

Foreign LLCs should expect to receive their EIN after approximately two weeks following successful application submission. However, it is important to note that this is a standard estimate and individual application processing times can differ, particularly during times of heightened demand or unexpected circumstances, such as staffing limitations or system glitches.

To expedite the EIN application process, it is recommended that foreign LLCs carefully review and prepare their paperwork beforehand. Understanding the necessary information and having it readily available when completing the application will minimize errors and potential delays. Utilizing electronic means for application submission, such as online channels facilitated by the IRS website, can significantly reduce the processing times.

In conclusion, the timeframe involved in obtaining an EIN for a foreign LLC in North Dakota varies and may be subject to unexpected delays. However, businesses can potentially expedite the process by accurately completing the necessary paperwork and utilizing online application channels. Familiarizing oneself with these essential steps and being diligent in the application process will ensure that individuals and businesses can smoothly obtain the EIN they need to operate legally and tax efficiently in North Dakota.

In Conclusion

Obtaining EIN for any North Dakota 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.


About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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