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

The process of obtaining an EIN for your foreign LLC in Florida can take a few weeks. The IRS will issue an EIN to a foreign LLC if the company meets certain requirements. You should check with your state’s service center to find out what these requirements are. Once you have received your approval letter, you should mail the Form SS-4 to the state service center. An accountant or attorney can help you with the process.

Once you have completed the application process, the IRS will issue you an EIN. This document is known as the CP 575 and will be sent to you in four to five weeks. If you filed your application online, you can expect to receive a duplicate copy of the document via mail in four to five weeks. If you filed by mail, you will receive it within four to seven business days.

You can also file for an EIN for your foreign LLC in Florida without an SSN or ITIN. You will need to file a Form SS-4 with the IRS to get your tax ID. Paper applications can take four to six weeks to process. If you’d rather have your tax ID quicker, filling out a short online application can take just an hour or two. It is important to be patient. If you don’t have the time or money to wait, you can start by forming a separate business bank account and applying for an EIN.

Although obtaining an EIN for foreign LLC in Florida can take some time, the process is worth the extra effort. The process is important for the success of your business and will ensure that it operates within the law. There are two types of business EINs: Gold and Platinum. Each of these requires an application fee and will cost you more than one thousand dollars. So, if you want to obtain an EIN for foreign LLC in Florida, it’s a wise decision to use a service with a Platinum package.

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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