To obtain EIN for Hawaii 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 Foreign LLCs to form a Hawaii 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.
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 Hawaii
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 Hawaii 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 Hawaii–
- 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 Hawaii
For a foreign LLC conducting business in Hawaii is easy. However, there are some restrictions businesses have while forming a foreign LLC in Hawaii. One needs to know the following points before setting up their foreign LLC in Hawaii,
Transacting Business In The State of Hawaii
The State regulations determine whether foreign enterprises are required to collect state sales taxes in their home state. 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 establishing a warehouse, an office, or a store in the State or employing a Sales representative in Hawaii.
Registering The Business
A foreign business LLC is not permitted to do business in Hawaii unless it receives a Certificate of Authority issued by the Department of Commerce and Consumer Affairs (DCCA) of the State of Hawaii.
The business LLC must file an Application for Certificate of Authority for Foreign Corporation (Form FC-1) with the DCCA, Business Registration Division, together with the required filing fee(s) to register a Foreign Profit Corporation in Hawaii.
Effect Of Non-Registration
If a foreign LLC is not registered under Hawaii law, then it shall suffer through the following consequences:
- It is not permitted to file a lawsuit in the state.
- The business LLC will also be responsible for any costs or penalties that it should have paid if it had been legally registered.
- Furthermore, LLC members’ personal responsibility is not waived just because the corporation conducted business in Hawaii without permission
- The fact that the business LLC is not registered does not invalidate its contracts or preclude it from defending a lawsuit in Hawaii in case of a contractual dispute.
Deceptive Trade Practices
The Uniform Fraudulent Trade Practices Act, as well as criminal, civil, and vehicular code provisions targeted at preventing and prosecuting deceptive trade practices, have been enacted by Hawaii. These regulations restrict anything from deceptive advertising to tampering with a car’s odometer in order to maintain an open, fair, and transparent marketplace.
How Fast Can You Obtain EIN for Foreign LLC in Hawaii
An EIN for foreign LLC in hawaii 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 Hawaii is easy. You can apply for it online, and you can receive approval within a few days. This makes it easy to file your tax returns with the IRS.
For those who are not US citizens, it may be necessary to go through a few extra steps to obtain an EIN. The process is relatively simple, and you can receive a copy of your EIN in a week if you apply in person or by mail. If you apply online, however, you can expect to have your EIN in less than 15 minutes.
To begin obtaining an EIN, you will need to determine whether or not your business is a corporation, LLC, or partnership. You will also need to choose a registered agent to manage your business. You will also need to enter your personal Social Security number into the EIN application. You may also need to provide a copy of your certificate of registration from the Secretary of State.
An EIN is similar to a social security number, but it is used for tax reporting purposes. It is also important for hiring employees and for opening a business bank account. In order to open a bank account, you must provide a copy of your EIN. Financial institutions will also require a copy of your certificate of registration from your Secretary of State. You may also be required to apply for workers’ compensation insurance.
When forming a Hawaii LLC, you will need to determine your name. You may want to choose a name that is easy to remember, since it will help you attract more customers. You may also want to avoid naming your business something that is already registered in the state. If you do not have a name already registered, you can use a name search to check if it is available.
You may also have to apply for a federal tax ID number. This is not required for most businesses in the United States, but it is a necessity for Hawaii businesses. If you want to open a business bank account, you will need to provide a copy of your EIN. If you are planning to hire employees in Hawaii, you will need to provide a copy or fax of your Form SS-4. This form is also required for applying for loans. You may also be required to file an annual report with the Hawaii Department of Commerce and Consumer Affairs (DCCA). The purpose of this report is to ensure that you are in good standing with the state.
After you form your Hawaii LLC, you will need to choose a registered agent. You may want to choose a registered agent who has a physical office in Hawaii. This agent is the legal appointee to receive legal notices on your behalf. You will need to choose an agent who is available at regular business hours.
After forming your Hawaii LLC, you may want to register for an EIN. You can do this online, by mail, or by fax. EINs can be expedited, but there is a $25 expediting fee. Expedited processing will take at least three to five days.
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 Hawaii 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.