To obtain EIN for Tennessee 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 Tennessee. 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?
- What is an EIN (Employer Identification Number)?
- EIN for a Foreign Entity or Foreign LLC
- Restriction In Business For Foreign Entities In Tennessee
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 Tennessee 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 Tennessee–
- 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 Tennessee
To conduct business in Tennessee as a foreign entity, one has to follow some rules. Similar to filing the article of organization, every foreign LLC has to register with the Tennessee Secretary of State. Apart from that, there are some general rules LLCs as foreign entities have to follow to transact business in Tennessee.
Transacting Business In the State Of Tennessee
As I mentioned, to transact business in Tennessee LLCs have to register with the Tennessee SOS. Once registered, you need to meet some requirements for the State Sales Tax. If your LLC is involved in any kind of sales business, then you must have the following,
- A physical address of the LLC in Tennessee
- A physical office in Tennessee
- A warehouse and/or store in Tennessee
- A Sales representative in Tennessee
Your LLC should meet these requirements in order to transact business in Tennessee.
Registering The Business
To register your foreign LLC with the Tennessee Secretary of State you require to submit the Application of Authority. The form is available on the official website of Tennessee SOS. In the Certificate of Authority, the foreign LLCs must enter a few important details about their LLC. These details are as follows,
- Name of the LLC in home state and Tennessee (if different)
- Other names of the LLC in Tennessee (like fictitious names)
- Date of LLC formation in the home state
- Date of LLC formation (doing business) in Tennessee
- The effective date of the Certificate of Authority
- A statement that clarifies whether the LLC is members-managed or manager-managed
- Name of the managers if manager-managed
- A statement that clarifies if members are liable for LLC debts in Tennessee if it is a member-managed organization
- Address of the main office of your LLC in the home state
- A mailing address of your LLC if it is different from the principal address
- A statement that clarifies whether the LLC is a professional or non-profit.
- An authorized signature
The above-mentioned details must be provided by the LLC in order to get the Certificate of Authority.
Effect of Non-Registration
If the foreign LLC is not registered in the state of Tennessee, then the LLC would not be able to bring a lawsuit in the Tennessee state court. However, they can defend any such cases. On the other hand, LLCs will be fined heavily if they transact business in Tennessee without being registered. Though any business contract was done with the unregistered LLC will not be affected, but, it is strictly recommended that one must register the foreign LLC in Tennessee for hassle-free business.
Tennessee Consumer Protection Act
Tennessee does not have the Uniform Deceptive Trade Practice Law. Instead of that, the Tennessee law enforces the Consumer Protection Act under which 44 different types of deceptive activities are mentioned. Selling someone else’s products without letting them or the customers know, false advertisements, providing misleading information to the customers, and other such activities are considered fraud under the consumer protection act.
In such cases, the attorney general can bring a lawsuit against the LLC. 6 months in jail or a $500 fine or both can happen if proven guilty.
How Fast Can You Obtain EIN for Foreign LLC in Tennessee
An EIN for foreign LLC in Tennessee can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
Foreign LLCs seeking to obtain an EIN in Tennessee must submit an application to the Internal Revenue Service (IRS). While there is no fixed duration within which the IRS guarantees EIN issuance, in general, it aims to process applications promptly. However, certain factors may impact timing, making it difficult to provide an exact estimate on how fast an EIN can be obtained.
Firstly, the accuracy and completeness of the application play a significant role in expediting the process. Errors or incomplete information can lead to delays, requiring additional time to correct and re-submit the application. Therefore, foreign LLCs should ensure their applications are double-checked to minimize potential setbacks caused by mistakes or missing details.
Moreover, external factors, such as changes in regulations or larger volumes of applications being currently processed by the IRS, can also influence the waiting time for an EIN. Variations in workload within the IRS can impact the speed with which they process incoming applications. Foreign LLCs should be mindful that unforeseen circumstances may cause delays beyond their control.
Furthermore, competent guidance from tax professionals specializing in corporate law can contribute to a smoother and faster application process. Engaging the services of experts who understand the specific requirements for obtaining an EIN can assist in completing the application correctly and navigating any potential obstacles effectively. These professionals have the knowledge and experience to advise on the appropriate documents to be submitted, address specific concerns, and ensure the compliance of the application with IRS guidelines.
Ultimately, foreign LLCs seeking to obtain an EIN for Tennessee should be prepared and well-informed about the entire process. Though the specific duration cannot be determined universally, efficient and accurate completion of the application form, external circumstances, and the expertise of professionals aiding the process may influence how quickly an EIN is obtained.
By recognizing the importance of an EIN in conducting business in the United States, foreign LLCs can cautiously navigate the process, aware that potential delays and variations exist. Remaining patient and proactive throughout the waiting period is crucial to ensure compliance, timely tax affairs, and smooth operations as a foreign LLC in Tennessee.
In conclusion, while the timeline for obtaining an EIN for a foreign LLC in Tennessee is subject to various factors beyond direct control, efficiency can be enhanced through a comprehensive and accurate application, awareness of potential external influences, and seeking professional guidance. By valuing compliance and efficiency throughout the process, foreign LLCs can expedite the attainment of an EIN and benefit from the ease it brings to their operational and financial activities in Tennessee.
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 Tennessee
Foreign LLCs in Tennessee face additional hurdles due to the jurisdictional differences involved. The first step in obtaining an EIN is to register the LLC with the Tennessee Secretary of State, a process that is similar for both domestic and foreign LLCs. However, foreign LLCs must also provide various authenticated documents alongside their application, such as a Certificate of Existence and a licensed transacting company’s application. Depending on the origin state or country, attaining these documents can be a time-consuming process due to differing requirements, language barriers, or delays in obtaining official signatures and stamps.
Once the foreign LLC’s registration is complete, the next step is to obtain the EIN from the Internal Revenue Service (IRS). While there is no specific duration mentioned by the IRS for a foreign LLC to receive their EIN, it generally takes around two weeks to complete the process. However, several factors can influence the time it takes for the IRS to process the request. These factors include the accuracy and completeness of the LLC’s documentation, the volume of applications received, and any additional information required by the IRS. Any errors or omissions in the application can result in additional delays, making it crucial for foreign LLCs to ensure all documents are in order before submitting their EIN application.
Moreover, unforeseen circumstances such as public holidays can further impact the time it takes to receive an EIN. It’s important to bear in mind that the IRS handles EIN applications on a national level and must allocate resources accordingly. Therefore, processing times might vary depending on the overall demand and the current workload of the IRS office handling the applications.
Foreign LLCs seeking a swift acquisition of an EIN in Tennessee need to be proactive and diligent in their application process. Careful attention should be given to compiling and submitting all required documentation in an accurate and timely manner. Utilizing professional assistance, such as consulting an attorney or utilizing specialist services, can also streamline the process, making it more time-efficient.
While the process to obtain an EIN for a foreign LLC in Tennessee may seem tedious, it is essential to comply with the necessary procedures to ensure smooth operations within the state. Managing expectations regarding the time frame associated with this process significantly reduces frustrations and allows foreign LLCs to focus on their primary goal: establishing a successful business venture in Tennessee
Obtaining EIN for any Tennessee 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.