EIN for District of Columbia Foreign LLC – Obtaining EIN For Foreign Entity


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To obtain EIN for District of Columbia 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 D.C. 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 District of Columbia 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 District of Columbia
    • 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 D.C.

District of Columbia has some guidelines when it comes to conducting a business in the state. To start a foreign LLC, businesses have to be more careful. Here are some points to consider,

Transacting Business in The State of D.C.

If a foreign business corporation wants to extend its business operations in D.C., then it must foremostly register itself with the D.C. Department of Consumer and Regulatory Affairs in order to conduct business in the District. The Foreign Business Entity registration is also necessary to determine the collection of State Sales Tax in another State. To collect State Sales Tax, the business LLC must have a physical presence in the state, such as owning a warehouse or sales office in that state, as well as a store, employee, or sales representative.

Registering The Business

For registering the foreign business LLC with the State of D.C., the company must file a Foreign Registration Statement (Form FN-1) with the District of Columbia Department of Consumer and Regulatory Affairs to register your business in the District of Columbia (DCRA).

A foreign filing entity may not conduct business in the district unless it has registered with DCRA’s Superintendent of Corporations.

Effect of Non-Registration

A foreign business entity that conducts its business operations in D.C. without registration shall lose its right to legal representation in the Court of Law in the State. 

Such a business LLC shall also be held accountable for any fees, fines, liabilities, and other charges that the entity would have been liable for if it had registered and submitted all required reports during the time in which it did business in the District. To recover these fees, fines, and other charges, the District of Columbia Attorney General may file a lawsuit in the Superior Court of the District of Columbia. 

D.C’s Deceptive Trade Practice Act 

The District of Columbia identifies a list of activities that are deemed deceptive commercial practices. False advertising, bait-and-switch methods, and other strategies include marketing worn or damaged items as new products. The State strictly prohibits such deceptive trade practices and the Office of the Attorney General in Washington, D.C. can pursue any consumer complaint filed for such a cause.

How Fast Can You Obtain EIN for Foreign LLC in District of Columbia

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

Obtaining an EIN for a Foreign LLC in the District of Columbia can be done easily. However, there are some steps you should take to ensure that you get your EIN on time. First, you should ensure that your business name is legally registered. DC has laws that require businesses to pay taxes, and an EIN is one way to track that activity. If your LLC does not have a registered name, you may have to get a DBA form, or “doing business as” form. This is usually done through the Office of Tax and Revenue.

The IRS also has a page on its website that provides a lot of information about ITINs. However, the process of getting an ITIN is more complicated than the process of getting an EIN. This is because the IRS needs to verify your address, and then mail you a verification letter. Also, if you misplace your EIN Confirmation Letter, the IRS will not issue you another one. This is why it is important to save the file when you receive the confirmation letter, so you can find it later.

To apply for an EIN, you can either go online or submit an offline application. The online option is the quickest way to do this. You can also fax your application, which will take about a week to process. In Washington DC, you can pay a $100 expedited service fee for same-day processing. If you mail your application, it will take about four weeks to process.

The process of applying for an EIN in Washington DC is the same as applying for one in the rest of the United States. You will need to fill out an application, submit a filing fee, and pay an expedited service fee. You can also choose to receive a physical EIN letter, which will be mailed to your address. If you choose to receive an EIN letter by mail, you will need to provide a mailing address, as well as an individual taxpayer ID number. However, if you want to receive an EIN digitally, you can use the EIN application assistant. This tool will ask you where you want to receive the EIN, and you will be able to use a standardized version of the application.

You should be aware of the fact that DC requires a biennial report for LLCs. You may also need to apply for a Certificate of Good Standing. This proves that your LLC has been formed legally and is active in the DC jurisdiction. The Certificate of Good Standing also identifies the registered agent for the LLC. The registered agent must have a DC street address, and he or she can be an individual or an LLC. The agent may be a member of the LLC, or a professional registered agent.

An EIN is important to open a bank account for your LLC. The EIN will also help banks track financial activity. However, it is not necessary for the only person in the LLC to have an EIN. In addition, you do not need to have an operating agreement in DC. However, a comprehensive operating agreement will help you ensure that all the owners of your LLC are on the same page. This will minimize the chance of a future conflict.

FAQ

How to obtain EIN for foreign LLC in D.C.?

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 D.C. 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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