EIN for Ohio Foreign LLC – How to Obtain EIN For Foreign Entity

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To obtain EIN for Ohio 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 Ohio 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 Ohio 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 Ohio
    • 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.

Restrictions in Business For Foreign Entities in Ohio

If you are willing to start a foreign LLC in Ohio, you must know that there are some restrictions for you. These are general guidelines that all foreign LLCs should follow before forming a foreign LLC in Ohio. Here are some important points to note,

Transacting Business In Ohio

Transacting business in Ohio requires the registration of the company. Before starting up your Ohio foreign LLC you must register your business with the Ohio Secretary of State. After that, the taxes should be considered. To register for the state sales tax there are a few things a foreign LLC should have. 

  • A physical address in the state
  • Warehouse in the state
  • Any store/physical office in the state
  • A sales representative in the state

If you are having all these things as a foreign entity, then you can transact your business in the state of Ohio. 

Registering The Business

To register your foreign business in Ohio, one has to submit a Certificate of Authority. This certificate needs to have details like the name of the LLC when it was formed, the name of the LLC formed in Ohio, the name and address of the registered agent in Ohio, the address of the office for legal documents, a statement in which the LLCs will provide their consent for service of process, and so on. These details must be submitted through the Certificate of Authority. 

Effect Of Non-Registration

Failing in registering the LLC brings some cons. The biggest disadvantage of not having a registered LLC in Ohio is that LLCs cannot file a lawsuit if needed. They can defend though. On the other hand, the members of the LLC won’t get personally affected or liable for not registering the company. LLCs, without registration, still can transact business in Ohio. However, it is recommended to get your foreign LLC registered in Ohio for a smooth and hassle-free service. 

Ohio Deceptive Trade Practices Law

Any foreign LLCs transacting business in the state of Ohio have to be compliant with the Deceptive Trade Practice Act. Some of the businesses such as misselling, selling through misinformation, misleading sales, and any kinds of business that involve fraudulent activities are strictly prohibited. Attorney generals can bring the lawsuit. The civil penalty can be up to $25,000 if provided guilty. 

How Fast Can You Obtain EIN for Foreign LLC in Ohio

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

When setting up a business in Ohio, you may need to obtain an Employer Identification Number (EIN) for a foreign LLC. An EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) for use in filing taxes and other business activities. The process of obtaining an EIN for a foreign LLC in Ohio is relatively straightforward and can usually be completed in a matter of days or even hours.

The first step in obtaining an EIN for a foreign LLC in Ohio is to determine if the LLC is eligible. Depending on the type of business and other factors, an LLC may need to register with the Ohio Secretary of State’s office before obtaining an EIN. The Ohio Secretary of State can provide more information about which entities require registration.

Once the LLC is determined to be eligible, the next step is to apply for an EIN. The simplest way to apply is to do so online through the IRS website. To complete the application, you will need to provide basic information about the LLC, such as its name, address, and the names and Social Security numbers of the LLC’s owners/managers. You will also need to answer a few questions about the type of business and the purpose for obtaining the EIN.

After completing the application, the IRS will review it and issue an EIN if approved. Generally, the application is approved and an EIN issued within a few minutes or hours. If the EIN is not issued immediately, the IRS will typically respond within one business day.

Once an EIN is obtained, it must be used on all tax forms and other documents related to the LLC, such as the Ohio LLC filing. The EIN must also be used when opening a bank account, applying for business licenses or permits, and other activities.

It is important to note that an EIN is only valid for the LLC for which it was issued. It cannot be used for any other business, even if it is related. Additionally, an EIN cannot be transferred to another business or individual, even if the LLC is sold or the ownership changes.

In summary, obtaining an EIN for a foreign LLC in Ohio is a relatively straightforward process that can usually be completed quickly. Before applying, it is important to confirm that the LLC is eligible and that all required information is available. Once the application is submitted, the IRS will typically issue the EIN within a few hours or one business day. Once an EIN is obtained, it must be used on all tax forms and other documents related to the LLC.


How to obtain EIN for foreign LLC in Ohio?

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 Ohio 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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