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

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To obtain EIN for Colorado 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 a Colorado 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 Colorado 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 Colorado– 
    • 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 Colorado

There are some restrictions in conducting business in Colorado. When you are starting up a foreign LLC in Colorado, you have to make sure to follow these rules. Here are some of the points to note,

Transacting Business In Colorado

Post the registration of LLCs, the tax regulation aspect comes into the picture. The State regulations determine whether foreign LLCs are required to collect state sales taxes in their home state. To be obligated to collect state sales tax on sales to citizens of the particular state, a firm must have a physical presence in—or nexus with—the state. That means a foreign LLC shall be considered to have a physical presence in Colorado if they establish a store, an office, or a warehouse in the State or employ a sales representative in the State.

Registration of Businesses

If the foreign business LLC is conducting operations in Colorado, then they must foremost register their foreign corporation with the State, in accordance with the Foreign Entities provision of Colorado’s Corporations and Associations Act. The LLC must file a Colorado Statement of Foreign Entity Authority with the Colorado Secretary of State, Business Division, to register a foreign corporation in Colorado. This document shall become a part of the public record upon registration.

Effect of Non-registration

If a foreign LLC is not registered under Colorado Law, then it may have to undergo through following consequences:

  • The business LLC shall not be permitted to file a lawsuit in the state in order to recover debts.
  • Furthermore, your LLC is responsible for costs and penalties if it transacts or conducts business in Colorado without permission.
  • The lack of registration, on the other hand, has no bearing on your LLC’s contracting actions in the state or defending a case in the state in case a dispute arises from a contract.

Restricted Businesses

The Colorado Consumer Protection Act establishes a list of misleading business practices, as well as civil and criminal fines for violators and associated trade rules. The law, which incorporates the Uniform Deceptive Trade Behaviors Act, includes basic consumer protection requirements as well as detailed information on specific practices and industries. The following are examples of conduct that are forbidden under Colorado’s deceptive trade practices laws

  • Selling worn or damaged items as new products.
  • Making misleading statements about the goods’ certification with the intent of deceiving the public.
  • Falsely criticizing another company’s products or services

How Fast Can You Obtain EIN for Foreign LLC in Colorado

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

If you have a plan to set up a new business in Colorado, you should learn how to get an EIN for a foreign LLC. Failing to obtain this number may result in a bad reputation or even legal action against your company. As a business entity, an EIN is the equivalent to a social security number. This number is necessary to transact business. If you don’t have an EIN, you cannot do business in Colorado.

To apply for an EIN, you must provide your SSN or ITIN. You can get an EIN in as little as 15 minutes online. Otherwise, you can also mail it to the IRS, which will take up to four weeks to process. Make sure to print the page or write down the EIN number so that you can reference it later. If you don’t have an SSN or ITIN, you can apply online with a copy of your Form SS-4. If you don’t have an ITIN, you should also provide the corresponding information on your Form SS-4.

To obtain an EIN for a foreign LLC in Colorado, you must have a registered agent in Colorado. An operating agreement outlines the operational rules and regulations for the LLC. While an operating agreement is not required by state law in Colorado, it’s recommended. After forming the company, you’ll need to get your EIN. An EIN stands for Employer Identification Number or Federal Tax Identification Number. It’s like a social security number for your business. You’ll need an EIN before you can open a checking account and file state and federal taxes.

You can get an EIN for a foreign LLC in Colorado by registering it in the state in which the business will conduct its operations. The documents filed with the state will include the name and address of the company’s registered agent. This information is used in tax reporting and for other purposes. You will need to have a registered agent to be able to pay taxes and other costs. You should not forget to file your operating agreement if you do not have a registered agent.

After forming an LLC in Colorado, you must name it. Your company must have a name that is not already used by any other businesses in Colorado. The State of Colorado’s website offers a Business Name Generator to help you brainstorm. Remember to follow the naming rules to make your business name memorable. You should also choose a registered agent for your business in Colorado. Your registered agent will receive important documents and official government correspondence on behalf of your company.

When you form an LLC in Colorado, you must file a Periodic Report with the Secretary of State. It is important to file your annual report within three months, or one and a half months before your formation date. The filing fee is $10. After you file your Annual Report, you must also file a quarterly tax return with the state. If you are starting a restaurant, you should be aware of the state’s regulations. You may have to obtain a health license, a building permit, or a business license.


How to obtain EIN for foreign LLC in Colorado?

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.

In Conclusion

Obtaining EIN for any Colorado 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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