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.

You may have wondered: How fast can you obtain EIN for Foreign LLC in District of Columbia? The answer is pretty fast, as long as you follow a few simple steps. To begin, you will need to apply for an EIN. This is essentially like the social security number for a business entity. You must provide information about the responsible party, which will include the name, address, phone number, and email. After completing all the required information, you will be given a unique EIN that belongs to your business. Once you obtain an EIN, you cannot transfer it to another business or cancel it. In case you lose your EIN, the IRS will close the account, but you can request for a reactivation.

If you are a foreign LLC, you must file a Foreign Registration Statement with the District of Columbia (DCRA). Without a filing statement, you cannot legally conduct business in the District of DC. This registration is required by the DCRA Superintendent of Corporations. Without a filing statement, you will lose the right to legal representation in the D.C. region. So, how fast can you obtain an EIN for Foreign LLC in District of Columbia?

Getting an EIN for a foreign LLC is essential for its legal identity and business success. You need it in order to set up payrolls for your employees, file payroll taxes, and hire employees. Additionally, having an EIN will help you separate your personal money from your business assets in the event of a lawsuit. The EIN is an essential part of the corporate veil, which separates the business entity from its members.

If you plan to establish a professional corporation, you will need an EIN to register your business. In Washington DC, this process can be streamlined if you have the proper documentation. The qualification requirements for a professional corporation are the same as for a regular corporation, and the process is similar. However, the fee for an EIN is $220. If you do not have any other documents, you will need to hire a registered agent for your business in District of Columbia, which can cost around $99 per year.

A business can obtain an EIN for Foreign LLC in DC by filing its taxes. The application can take up to four weeks, while the SSN process can take as little as one week. You can apply for an SSN by visiting the local government office, or you can apply online. Once you’ve submitted the necessary documents, the IRS will issue the EIN for your business. Once you’ve filed your taxes, the EIN for Foreign LLC in District of Columbia is ready for use.

The next step is naming the business. It should reflect your brand. It should be unique and say something about the products and services you’re offering. Choose a name that people will remember. DC government website has a tool for checking the availability of DC business names. This is a good way to see if your desired business name is available. If you don’t find one, you can reserve it for 120 days.

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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