Fact Checked by Editorial Staff
To obtain EIN for Oklahoma 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 Oklahoma 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 Oklahoma 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 Oklahoma–
- 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 Oklahoma
While forming a foreign LLC in Oklahoma LLCs have to follow some rules and regulations. These restrictions or rules are basic guidelines that one must follow in order to start a foreign LLC in the state of Oklahoma. Here are some points to consider,
Transacting Business In Oklahoma
To transact business in Oklahoma LLCs have to register their business with the Oklahoma Secretary of State. To register the foreign LLC in Oklahoma, one has to submit a registration form along with the details of their LLC. Before you transact your business in Oklahoma, make sure you have the following,
- A physical address in Oklahoma
- A warehouse & store in Oklahoma
- An office in Oklahoma
- A sales representative from Oklahoma
These are mandatory to transact business in Oklahoma. Once you register your foreign LLC in Oklahoma, you must consider the State sales tax. For the state sales tax, one has to have these above-mentioned places/people in Oklahoma.
Registering The Business
Registering your foreign LLC in Oklahoma needs a certificate of authority just like other states. In the certificate of authority, one has to clarify a few details about their domestic as well as foreign LLC in Oklahoma. The following details should be included in the certificate of authority,
- Name of the LLC in the domestic state
- Name of the LLC in the state of Oklahoma (if different)
- Name and address of Oklahoma registered agent
- State where the LLC is formed
- Date of the LLC formation
- Email address of the concerned person of the LLC
- An authorized signature
A certificate of good standing is also needed for transacting business in Oklahoma. This certificate is issued by the Secretary of State of the domestic state. The certificate of good standing is a mandatory requirement to start a foreign LLC in Oklahoma.
Effect Of Non-Registration
If you don’t register your foreign LLC in Oklahoma, you will not be able to bring any lawsuit to the state. Though, you can defend a lawsuit. Like other states, in Oklahoma, failing to register a foreign LLC does not have any direct effect on members of the LLC.
Oklahoma Deceptive Trade Practice Law
In Oklahoma, there are some restrictions on Foreign LLC or any businesses. Deceptive Trade Practices are considered to be a misleading and false advertisement of the product/service you are offering. Along with the misleading information or advertisement, businesses that are involved in fraudulent activities, cheating customers, misselling, and advertising false information regarding any product or service are considered to be guilty. An attorney general can bring a lawsuit for deceptive trade practices. The civil penalty for this is up to $10,000.
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.
How Fast Can You Obtain Ein for Foreign LLC in Oklahoma
The first step for foreign LLCs looking to obtain an EIN in Oklahoma is to determine their eligibility. While this process can vary depending on the specific circumstances of the foreign LLC, it typically involves submitting the necessary documentation and information to the Internal Revenue Service (IRS). This documentation may include the LLC’s articles of organization, operating agreement, and other relevant documents. Once the IRS has reviewed and approved these documents, the foreign LLC will be assigned an EIN.
The timeline for obtaining an EIN for a foreign LLC in Oklahoma can vary depending on a number of factors. In some cases, foreign LLCs may be able to obtain an EIN within a matter of days, while in other cases, the process may take longer. Factors that may influence the speed of the process include the completeness and accuracy of the documentation submitted, the workload at the IRS at the time of submission, and any potential backlogs or delays in processing applications.
It is worth noting that obtaining an EIN for a foreign LLC is typically a straightforward process, and in many cases, businesses are able to obtain their EIN in a relatively short amount of time. However, foreign LLCs should be prepared for potential delays and should factor in the time required to obtain an EIN when planning their business operations in Oklahoma.
One strategy that foreign LLCs can use to expedite the process of obtaining an EIN is to work with a professional service provider that specializes in assisting foreign businesses with tax and regulatory compliance in the United States. These service providers can help foreign LLCs navigate the complexities of obtaining an EIN and ensure that all necessary documentation is submitted in a timely manner.
Overall, while the process of obtaining an EIN for a foreign LLC in Oklahoma may pose some challenges, it is an important step in establishing a business presence in the state. By understanding the process, being proactive in gathering the necessary documentation, and working with experienced service providers as needed, foreign LLCs can expedite the process and ensure that they are able to obtain an EIN in a timely manner.
In Conclusion
Obtaining EIN for any Oklahoma 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.