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


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To obtain EIN for Arizona 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 Arizona 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 Arizona 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 Arizona– 
    • 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 Arizona

In Arizona, 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 Arizona

State regulations in Arizona determine the position regarding the collection of State sales tax, as to whether the foreign enterprises are required to collect state sales taxes in their home state or not. To be obligated to collect state sales tax on sales to citizens of that state, a firm must have a physical presence in—or nexus with—the state. To collect State Sales Tax in Arizona, the foreign LLC must either own a store, a warehouse, an office, or have a sales representative working in the State.

Registering The Business in Arizona

If a foreign business entity intends to conduct its business operations in the State of Arizona, then as the first step, the entity must get their foreign company registered with the State of Arizona, in accordance with the Arizona Limited Liability Company Act. It must file an Application for Foreign Limited Liability Company Registration with the Arizona Corporation Commission. 

In order to participate in commercial operations in Arizona, all limited liability companies (LLCs) and corporations are required by law to submit registration paperwork with the State. Both for-profit and nonprofit organizations originally registered in other states must register with the Arizona Corporation Commission in order to operate their businesses in Arizona.

The business entity must also identify its registered agent who shall act as the communication bridge between the business entity and the State Authorities for any official communication. The foreign LLC should also note the street address of their Registered Agent in Arizona while registering their business in the State. 

Effect Of Non-Registration of Business

If a Foreign LLC chooses to conduct its business in Arizona without registering in accordance with the Arizona State Laws, then such business LLC shall primarily lose its right to legal representation in the Court of Law in the State of Arizona. The Arizona Attorney General’s Office shall possess the right to file a lawsuit against such a business LLC to prevent the LLC from doing business in Arizona. Any member of the LLC shall not be held responsible for the liabilities, debts, and obligations of the company in the State. 

Nevertheless, irrespective of the non-registration of the LLC, any contracts executed by such a business LLC shall not be considered invalid and the business entity shall hold the right to defend its position in case a dispute arises. 

How Fast Can You Obtain EIN for Foreign LLC in Arizona

As a foreign-owned LLC, you are probably wondering, “How fast can I obtain an EIN for my Foreign LLC in Arizona?” In reality, it depends on many factors. In most cases, obtaining an EIN is a simple process and costs nothing. But there are some restrictions. First, you must make sure that you are not operating under the name of another LLC. You can do this by creating a foreign entity in a foreign state.

Next, you should get all of the necessary permits and licenses. If you do not have these, check out the Small Business Administration’s business license and permit lookup tool. And because many states require an annual report from business entities, especially LLCs, you should file one with the state. You can file online or print a form to file this document. We make every effort to keep the information up-to-date.

Before filing your taxes, you should ensure that you have all of the information necessary for your EIN application. For example, the name and address of the entity’s general partner and the address and telephone number of the person who is responsible for filing taxes should be included on your Form SS-4. Finally, make sure that you have the proper information regarding the owner, grantor, and principal officer on all forms.

Then, you need to report any changes to the state’s Commerce Commission. To do so, you should file a form with the Arizona Commerce Commission, called the Statutory Agent Acceptance. It requires a fee of $150 to file an LLC in Arizona, but the expedited fee is $35. You can also file your application through an online application service, such as IncFile.

FAQ

How to obtain EIN for a foreign LLC in Arizona?

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 a 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 appoint a third-party designee to 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 Arizona 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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