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To obtain EIN for South Carolina 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 LLC in South Carolina. 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 South Carolina 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 South Carolina–
- 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 South Carolina
The foreign LLCs in South Carolina are required to mandatorily register themselves with the State of South Carolina if they are “transacting business” in South Carolina, according to South Carolina’s LLC regulations.
Transacting Business In South Carolina
Further ahead, post the incorporation of foreign LLC, their position with regards to the subject of taxation must be addressed. According to state rules, foreign LLCs must collect state sales taxes in their home state. For a foreign LLC to be liable to collect state sales tax on sales to its residents, the company must have a physical presence in—or a connection with—the State. If a foreign LLC opens a store, an office, or a warehouse in South Carolina or hires a sales representative there, it is regarded as having a physical presence.
Registering The Business
The South Carolina Foreign LLC must file an Application for Certificate of Authority with the South Carolina Secretary of State, Business Filings Division, in order to register a foreign corporation in South Carolina.
The Secretary of State Office in South Carolina requires a Certificate of Existence or Good Standing issued by the home state to approve a foreign qualification application. The foreign LLC must also hire a registered agent in South Carolina who shall act as the official communicator between the firm and the Secretary of State office.
The Secretary of State requires an initial annual report when filing for-profit corporations alone. The Secretary of State does not require an annual report.
Effect Of Non-Registration
If a South Carolina foreign LLC starts its business operations in the State without registration, then such entity may have to face the following consequences as per the South Carolina Code of Laws, Title 33, Chapter 15, Article 1, Section 33-15-102:
- Such a business LLC shall be barred from taking any action, filing a suit, or maintaining a proceeding until it has registered and paid all fees for the time it performed business there without being registered.
- The State’s Court of Law may also stay all the proceedings concerning such a business LLC until the firm obtains the certificate.
- Such foreign Corporation may also be liable to civil penalties to the tune of $10 per day and upto $1000 in each year. The Attorney General may collect all the penalties and fines imposed on the LLC.
- However, the LLC’s contracts will not be invalidated or prevented from defending a lawsuit in South Carolina even though it is not registered.
South Carolina Deceptive Trade Act
The South Carolina Unfair Trade Practices Act regulates the business practice standards to be implemented in the State. It strictly prohibits any deceptive behavior, misrepresentation to consumers, fraud, etc. The Unfair Trade Practices Act forbids unfair competition and unfair or deceptive actions or practices during any business activities, and it targets both consumer protection and anti-competitive behavior.
Attorney general, any individual who has suffered a determinable loss, the solicitor, the county attorney, or the city attorney, with the attorney general’s prior consent, may file a lawsuit in state court against the offender.
How Fast Can You Obtain EIN for Foreign LLC in South Carolina
An EIN for foreign LLC in South Carolina can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
EINs (Employer Identification Numbers) are essential for foreign LLCs operating in the United States, as they are required for tax purposes and opening bank accounts. For foreign LLCs planning to start operations in South Carolina, the efficiency of the EIN application process is crucial. The faster an EIN can be obtained, the sooner the foreign LLC can commence its business activities.
When it comes to obtaining an EIN for a foreign LLC in South Carolina, there are several factors that can influence the speed of the process. These include the documentation requirements, the involvement of multiple government agencies, and any potential delays caused by inaccurate or incomplete applications.
Documentation requirements play a significant role in how quickly an EIN can be obtained. In South Carolina, foreign LLCs typically need to submit certain key documents to successfully complete the application process. These documents may include a copy of the LLC’s formation documents, such as the articles of organization, an operating agreement, and the LLC’s taxpayer identification number from the foreign jurisdiction.
Submitting these documents accurately and in a timely manner can significantly expedite the EIN application process. It is crucial for foreign LLCs to carefully review the documentation requirements to ensure that all necessary paperwork is submitted correctly. Any inaccuracies or omissions can lead to unnecessary delays and potential complications.
Another potential factor that can impact the speed of obtaining an EIN for a foreign LLC in South Carolina is the involvement of multiple government agencies. Due to the complexity of the process, multiple agencies may be involved in reviewing and approving the application. This coordination among different agencies can sometimes slow down the overall timeline.
Moreover, delays can occur if inaccurate or incomplete information is provided in the EIN application. Any errors or missing details can result in queries from government officials and additional processing time. Foreign LLCs should double-check their applications thoroughly to ensure all the required fields are completed accurately, avoiding any mix-ups or discrepancies that could potentially slow down the process.
While speed is crucial for foreign LLCs seeking to acquire an EIN promptly, it is equally important to prioritize accuracy during the application process. Rushing through the application or providing incomplete information may lead to mistakes that can further lengthen the process. Taking the time to understand and comply with the specific requirements of South Carolina’s EIN application process can support the foreign LLC in obtaining the EIN both efficiently and accurately.
To avoid unnecessary delays, foreign LLCs in South Carolina should consider seeking professional assistance. Engaging qualified consultants, attorneys, or registered agents who are experienced in EIN applications can be highly beneficial. These professionals are well-versed in the documentation requirements and understand the interplay between multiple government agencies involved in the process. Their expertise and attention to detail can help ensure that foreign LLCs successfully obtain their EINs as quickly as possible.
In summary, the speed at which a foreign LLC can obtain an EIN in South Carolina depends on various factors such as accurate documentation, efficient coordination among multiple government agencies, and minimizing any errors or omissions in the application. By carefully navigating through these aspects of the process and enlisting professional support where needed, foreign LLCs can achieve a faster EIN acquisition, allowing them to commence their operations timely and smoothly in the Palmetto 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 South Carolina 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.
