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.

If you are thinking of forming a foreign LLC in North Dakota, you will need to get an EIN. The EIN is similar to the Social Security number of a business. It is issued by the Internal Revenue Service (IRS) and is used to track and report taxes. For more information about the EIN process, visit the IRS website.

To get an EIN, you can apply online, by fax or mail. The online application takes about 15 minutes. However, depending on the type of application you are completing, you may need to wait up to four weeks. Applicants should also be aware that the system is only available seven days a week from 7 am to 10 pm Eastern Standard Time. Similarly, applications submitted by fax will take up to a week to process.

An EIN is a nine-digit number that serves as the tax ID for a business. As such, it makes it easy to file tax returns with the IRS. Whether you are planning to start a business or have an existing one, an EIN is necessary to make financial transactions and to maintain an account with a bank.

You can obtain an EIN for a foreign LLC in North Dakota by applying for one online. When you submit an EIN application, the IRS will verify that the information you provide matches with its records. This will give you the opportunity to make any corrections. Once you have completed the process, you will receive a digital EIN. Then, you can start using your EIN to open a business bank account.

In order to register a foreign LLC in North Dakota, you must first get a Certificate of Authority from the Secretary of State. You will also need to pay a registration fee. After you have received your certificate, you will need to register your business with the North Dakota Secretary of State. Afterward, you must get a trade name and a seller’s permit to conduct your business in the state.

During the application process, you will be prompted to give your new address. It is important to provide a real mailing address and not a PO box. Your street address will only contain 35 characters, so be sure to include all the details you can.

The IRS advises applicants to use the standardized version of the application. You can also submit an online application or fax it to the IRS. Alternatively, you can send a copy of your signed Articles of Incorporation to the IRS.

While it is possible to obtain an EIN for a foreign LLC online, it is best to choose a mail or fax method for faster processing. Online applications can be completed in less than 15 minutes, but mailed and faxed applications can take up to a week to process.

The EIN process is simple and free, but it will take a few days to get approved. The IRS offers a free tool to help verify your information.

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.

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.

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