To obtain EIN for Oregon 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 Oregon 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.
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 Oregon 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 Oregon–
- 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 Oregon
In Oregon, for a foreign LLC, there are some rules. In order to start your business as a foreign entity in Oregon, you have to follow these general guidelines. Before you head to transact your business as a foreign entity in Oregon, here are some important points to note,
Transacting Business In Oregon
To transact business in Oregon, one has to register their foreign LLC with the Oregon Secretary of State. After that, they can transact their business in the said state. After registration, the state sales tax needs to be paid. That will be possible if the LLCs meet certain requirements. The requirements are as follows,
- A physical street address of the business in Oregon
- A warehouse and/or a store in Oregon
- A registered office in Oregon
- A representative for sales in Oregon
Any foreign LLC, willing to transact business in Oregon, has to meet these requirements. Basically, the foreign entity has to have an existence in Oregon to transact business in the state.
Registering The Business
To register the Oregon foreign LLC with the Secretary of State, one has to produce the Application for Authority to Transact Business — Foreign Limited Liability Company. This application is mandatory to transact business in Oregon as a foreign entity. It needs certain details about your business. The application of authority is a similar document like articles of organization in the formation state. The details LLCs need to provide the application of authority are,
- The name of your LLC in the home state
- The name of your LLC in Oregon (if different)
- Home state name
- Date of the LLC formation in the home state
- Duration of the LLC
- The statement that states the requirements for ORS 63.714(3) are completed.
- Name and address of the registered agent in Oregon
- Authorized signature
- Address of the LLC’s principal place of business
- Address of the office where Secretary of State sends legal documents
These details should be submitted in the application to register your foreign LLC in Oregon.
Effect Of Non-Registration
Foreign LLCs that do not register or have authority in transacting business in Oregon are prohibited from bringing up any lawsuit to the state court. They can defend but cannot bring a lawsuit if not authorized in the state. On the other side, the members are not liable for any debt of the LLC in Oregon even when it is not registered or authorized.
Oregon Deceptive Trade Practices Act
In Oregon, like any other state, there are some major restrictions in transacting certain kinds of activities. One of them is a deceptive trade practice. Any company/business that puts up a false advertisement or misinformation about the product/services will be considered under this act. If your business is involved in selling damaged or old products by misleading customers, then also, it will be considered a crime under this act. In Oregon, involvement in such deceptive trade practices may bring a penalty of up to $200 or the cost of damage whichever is greater.
How Fast Can You Obtain EIN for Foreign LLC in Oregon
An EIN for foreign LLC in Oregon can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
The speed at which an EIN can be obtained for a foreign LLC in Oregon depends on several factors, including the chosen application method and a clear understanding of the process and requirements. Generally, there are four ways to apply for an EIN: online, by fax, by mail, and by telephone. Online application is often considered the fastest and most convenient method, with most applications processed and EINs provided instantly.
To apply online for an EIN for a foreign LLC in Oregon, business owners can visit the official IRS website and complete the online application form. This method is available for applicants who have a valid taxpayer identification number (such as a Social Security Number) and are the responsible party for the LLC. The online application is relatively straightforward, asking applicants to provide essential information about their business, such as the legal name, address, and principal activity.
Alternatively, business owners can also apply for an EIN by fax, which generally takes about four business days to process. To apply by fax, you need to complete the Form SS-4 provided by the IRS. The completed form must then be faxed to the designated fax number for the state of Oregon. It is important to complete the form accurately and provide all required information to avoid delays in the processing time.
For those who prefer a more traditional approach, it is possible to apply for an EIN by mailing the completed Form SS-4 to the IRS. This method usually takes approximately four weeks for processing. However, due to potential delays in mail delivery and processing times, it is important to be patient and allow sufficient time for the application to be processed.
Lastly, the telephone application method can also be used to obtain an EIN for a foreign LLC in Oregon. By calling the IRS, business owners can seek guidance and have an IRS representative assist them in completing the Form SS-4 over the phone. Although this method is generally convenient and timesaving, it may involve wait times due to high call volumes.
To avoid unnecessary delays in the EIN retrieval process, foreign LLCs looking to establish their presence in Oregon should ensure they have all the necessary information and documents readily available. This includes providing accurate information about the LLC’s structure, owners, and activities.
In conclusion, the speed at which a foreign LLC in Oregon can obtain an EIN depends on the chosen application method. Online application is generally the fastest, followed by fax, mail, and telephone application methods taking longer. Regardless of the method chosen, careful attention to providing accurate information and allowing sufficient time for processing is essential for foreign LLCs operating in Oregon. By understanding the process and requirements involved, business owners can ensure a smooth and efficient start to their operations in the Beaver State.
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 Oregon 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.
