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


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To obtain EIN for Florida 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 Florida 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 Florida 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 Florida– 
    • 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 Florida

When you are about to start a foreign LLC in Florida, you must know about the state’s rules and regulations. There are some points that must be considered before you start a foreign LLC in the state of Florida,

Transacting Business In The State Of Florida

The State regulations guide the collection of State sales tax by foreign enterprises. 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, such as owning a warehouse in Florida, a store, or an office in the State of employing a sales representative in the State.

Registering The Business

If a foreign LLC wishes to do business in the State of Florida, it must register its out-of-state corporation with the Secretary of State of Florida Office. A certificate of existence (also known as a certificate of good standing) issued by the Secretary of State of the home state, a completed application, a Florida registered agent, and the payment of a filing fee are all required to qualify your corporation to conduct business in Florida.

Effect Of Non-Registration

If a foreign LLC is not registered under Florida Law, then the following situations may result from the same:

  • Such a business LLC may not be permitted to file a lawsuit in the state or legally represent a matter of their interest in the Court of Law.
  • The LLC shall also be responsible for all costs and penalties that it should have paid if it had registered legally.
  • Plus, for each year the LLC conducts its business without a certificate of authority, it might face a civil penalty of $500 to $1,000.

However, the LLC’s contracts will not be invalidated or prevented from defending a lawsuit in Florida if it is not registered.

DECEPTIVE TRADE PRACTICES

The Deceptive and Unfair Trade Practices Act,  included in Chapter 501 of the Florida Statutes, prohibits deceptive practices by business entities. The legislation governs a variety of businesses, including food and supplements, real estate, consumer items, and credit cards. 

How Fast Can You Obtain EIN for Foreign LLC in Florida

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

Obtaining an EIN for your foreign LLC is a crucial step for any business that wants to do business in the United States. An EIN is basically the social security number for your business entity. This number is essential to conduct business, open bank accounts, and report taxes to the IRS and state. While obtaining an EIN can be a cumbersome process, there are some services that can make the process faster and easier.

The first step in obtaining an EIN for your foreign LLC is obtaining a certificate of good standing from its formation state. You can fill out this form online or print it out and complete it by hand. Make sure that the application is signed and that it contains a cover letter. You can then submit the application to the Florida Division of Corporation. After your application is approved, your foreign LLC will have the authority to conduct business in Florida.

If you want to establish a foreign LLC in Florida, you must first obtain a certificate of good standing from the state in which your current company operates. This document proves that your foreign company meets state requirements and paid the required fees. It is necessary to have this certificate to qualify for an EIN in Florida. Additionally, you need to have a registered agent to represent your foreign LLC.

If you do not have a social security number, you can still apply for a business EIN online. The process is simple and free. Fill out a simple one-page form. Once you have your form, the IRS will mail you an official letter.

If you have employees, you must apply for an EIN for every new hire. Without an EIN, your LLC is not legally allowed to sue or represent its interests in court. Moreover, it faces penalties for not registering. The penalties can range from $500 to $1000 for every year that you go without registering. Additionally, the lack of registration doesn’t affect your contracts with your clients.

The first annual report is required within a year of registration. You must file this report between January 1 and May 1 of the year you registered your LLC. If you do not file an annual report, you won’t be able to defend your LLC in court. You will also face fees and lose your certificate of authority.

Another requirement is that you have a registered agent in Florida. This agent must have a physical address in Florida. You cannot name the LLC using a PO Box address. It is also necessary that the registered agent accepts the application before it is submitted. If you are unsure about what to name your LLC, contact the Florida Division of Corporations for more information.

In general, a multi-member LLC needs an EIN for tax purposes. In addition, if you plan on hiring employees, you need to apply for an EIN. However, if you are the sole owner, you can register your LLC without an EIN.

FAQ

How to obtain EIN for foreign LLC in Florida?

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 Florida 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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