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

Steve Goldstein
Steve Goldstein
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To obtain EIN for Texas 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 Texas. 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 Texas 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 Texas
    • 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 Texas

In Texas, a context of a foreign LLC is an LLC formed in another state. The word foreign does not mean an LLC from another country; it just means an LLC was recognized by the laws of some other U.S. state.

Transacting Business In Texas

Although the State of Texas does not define the term “Transacting Business,” it does talk about foreign LLC having a physical presence in – or a nexus with- the state. For it to collect state sales tax on all of its sales.

In a Nutshell, a foreign LLC is transacting Business in Texas if it has:

  • a warehouse in Texas
  • a store in Texas
  • an office in Texas or
  • a sales representative in Texas

Registering the Business

A foreign LLC has to register its business in Texas via an application for registration for the Foreign Limited Liability Company with the Texas Secretary of State.

Effect of Non-registration

If a foreign LLC is not registered under Texas Law:

  • It may not be able to file a lawsuit in the court
  • It can be subjected to a civil penalty equivalent to all the taxes & fees that it should have paid while registering, with some additional penalties, interest, & late filing fees.
  • It doesn’t invalidate the LLC’s contracts or restrict an LLC from defending a lawsuit in Texas.

How Fast Can You Obtain EIN for Foreign LLC in Texas

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

The EIN, issued by the Internal Revenue Service (IRS), serves as the equivalent of a social security number for a business entity. It is used to identify and track tax liabilities, wages, and other important financial information. For a foreign LLC to obtain an EIN in Texas, several key steps need to be followed, and the overall process can be relatively straightforward if done correctly.

The first step in obtaining an EIN for a foreign LLC in Texas is to determine the eligibility of the business entity. As per IRS guidelines, the foreign LLC must have a legal obligation to pay income tax, either as a result of conducting business in the United States or by choosing to be classified as a corporation rather than a disregarded entity or a partnership. Once eligibility is confirmed, the next step is to submit a completed Form SS-4, the Application for Employer Identification Number.

Filing the Form SS-4 includes detailed information about the organization, such as its legal name, country of organization, business address, and responsible party information. It is essential to ensure accuracy when completing this form, as any mistakes or lack of clarity can result in a significant delay in the EIN acquisition process. Furthermore, the foreign LLC will also need to acquire an International Tax Identification Number (ITIN), if individuals are listed as responsible parties, but do not have a United States Social Security Number.

Upon submitting the completed Form SS-4, the IRS aims to process EIN applications within a reasonable timeframe. However, it is important to remember that the timing significantly depends on various external factors, such as the volume of applications received and current IRS practices. Generally, it is expected that the process of obtaining an EIN for a foreign LLC in Texas can be completed within two to three weeks from the date of submission. In some cases, it may take longer if additional documentation or clarifications are required. To avoid unnecessary delays, ensuring the accurate completion and submission of the Form SS-4 is crucial.

Efficiently obtaining an EIN for a foreign LLC is of paramount importance, as it allows entrepreneurs to establish their business presence in Texas promptly. The ability to swiftly secure an EIN enables foreign LLCs to comply with local and federal tax regulations, open bank accounts, and hire employees, among other critical activities required for business operations.

In conclusion, foreign LLCs seeking to enter the vibrant and robust Texan market need to understand the process and timeline for obtaining an Employer Identification Number (EIN). Ensuring eligibility, accurately completing the necessary paperwork, and promptly submitting the application will greatly contribute to expediting the EIN acquisition process. By efficiently obtaining an EIN, foreign LLCs can kickstart their Texas venture and unlock the vast opportunities this dynamic state has to offer.


How to obtain EIN for foreign LLC in Texas?

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.

How Fast Can You Obtain Ein for Foreign LLC in Texas

In Texas, foreign LLCs have several options for obtaining an EIN. One option is to apply directly with the IRS by filling out Form SS-4 either online, by mail, or by fax. This process typically takes a few business days to a few weeks, depending on the method of application and the workload of the IRS. Another option is to use a third-party service provider to help facilitate the EIN application process. These service providers can expedite the process and provide additional support and guidance to foreign LLCs.

The speed at which a foreign LLC can obtain an EIN in Texas can be influenced by various factors. One of the primary factors is the completeness and accuracy of the EIN application. Any mistakes or missing information can delay the processing of the application and result in additional correspondence with the IRS. Foreign LLCs should ensure that all required information is provided in the application to expedite the process.

Another factor that can impact the speed of obtaining an EIN is the current workload of the IRS. During peak tax seasons, such as the end of the fiscal year, the processing time for EIN applications may be longer due to the high volume of applications being submitted. Foreign LLCs should consider the timing of their EIN application to avoid potential delays.

Service providers can also play a significant role in expediting the process of obtaining an EIN for foreign LLCs in Texas. These providers have experience and expertise in navigating the EIN application process and can help foreign LLCs avoid common pitfalls and errors that may delay the process. Service providers can also provide additional support and guidance throughout the application process, ensuring that foreign LLCs have all the necessary information and documentation in order.

In conclusion, the speed at which a foreign LLC can obtain an EIN in Texas can vary depending on several factors, including the completeness and accuracy of the application, the current workload of the IRS, and the use of service providers. Foreign LLCs should carefully consider these factors and options available to them in order to facilitate a smooth and efficient process of obtaining an EIN for their business operations in Texas.

In Conclusion

Obtaining EIN for any Texas 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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