To obtain EIN for Georgia 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 Georgia. 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.
On this page, you’ll learn about the following:
- What is a Foreign Limited Liability Company?
- What is an EIN (Employer Identification Number)?
- EIN for a Foreign Entity or Foreign LLC
- Restriction In Business For Foreign Entities In Georgia
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 Georgia 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:
- 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.
- 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.
- 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.
- 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.
- 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:
- 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.
- 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
- 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
- Ways to apply for EIN Georgia–
- 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 Georgia
In Georgia, businesses have to follow some guidelines while forming a foreign LLC. These rules are applicable for all foreign LLCs. Here are some things to know before you form a foreign LLC in Georgia,
Transacting Business In The State of Georgia
As a part of the business operations, the LLCs are also required to collect state Sales taxes. The State regulations determine whether foreign enterprises are required to collect state sales taxes in their home state. An obligation to collect the state sales tax on sales to residents of that state arises when a business enterprise has a physical presence or a similar nexus in the state, such as establishing a store, an office, or a warehouse or employing a sales representative in Georgia.
Registering The Business in Georgia
The Foreign Business LLCs must file a Georgia Application for Certificate of Authority for Foreign Limited Liability Company with the Secretary of State Office of Georgia, Corporations Division, in order to register a foreign LLC in Georgia. This document can be sent or delivered in person.
Effect Of Not Registering Your Business
If a foreign LLC is not registered under Georgia Law, it shall face the following consequences:
- Such a business LLC shall lose its right to sue in any of the state’s courts.
- The non-registered LLC will also be responsible for all fees it should have paid if it had been legally registered, as well as a $500 penalty.
- The state may also take action to prevent your LLC from conducting business in Georgia in the future.
- However, not being registered does not render such LLC’s contractual obligations null and void, nor does it preclude it from defending a case in Georgia in case of a dispute.
Deceptive Trade Practices
Georgia follows the Uniform Deceptive Trade Practices Act, which is currently recognized by the majority of states. False advertising is prohibited under Georgia’s deceptive trade practices law, which makes it a misdemeanor and allows victims to sue for damages.
Georgia’s Fair Business Practices Act, which largely pertains to consumer transactions, contains many of the applicable rules and regulations. Consumer complaints are investigated and the law is enforced by the Governor’s Office of Consumer Protection.
How Fast Can You Obtain EIN for Foreign LLC in Georgia
When setting up a business in another country, you might wonder how fast it is to obtain an EIN for a foreign LLC in Georgia. First, you need to research the name to be sure that it is available and does not have any existing trademarks. Once you have the name, you need to file with the county where the business will be based. Georgia counties follow state laws, so it’s easy to search the county’s Superior Court listings. Then, you’ll need to publish the name in the local newspaper, according to Georgia law.
Once your business is set up, you’ll need to apply for an employer identification number (EIN). This number will be required to open bank accounts, file income tax returns, and pay employment taxes. You’ll also need to register with the state labor department and register for sales tax. In addition, you’ll need to register with the state’s tax department for sales tax identification numbers.
You can file your EIN online or by sending in a paper copy. In most cases, submitting your EIN online will result in an instantaneous EIN. The alternative, however, is to mail in the form of an SS-4 form, which may take up to four weeks. In either case, filing online is a good option because it eliminates the time-consuming and tedious paperwork.
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.
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.
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.
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.
Obtaining EIN for any Georgia 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.