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


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To obtain EIN for Illinois 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 Illinois 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 Illinois 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 Illinois– 
    • 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 Illinois

In Illinois, every entrepreneur has to follow some guidelines before they start their business. For a foreign LLC, there are, too, some rules to follow. Here are some important things to know before you form a foreign LLC in Illinois,

Transacting Business In The State of Illinois

Given the taxation aspect of business transactions, the State regulations determine whether foreign enterprises are required to collect state sales taxes. 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 a warehouse, a store, or an office in the State or employ a sales representative in the State.

Registering Business in Illinois

Corporations founded under the laws of foreign states or countries that transact business in Illinois must register with the Secretary of State’s office.

A corporation must file an application with the Secretary of State, present documentation in the form of a certified copy of the foreign corporation’s Articles of Incorporation and any revisions thereto, and pay a fee to the State in order to get a Certificate of Authority. The state will also levy yearly renewal fees and franchise taxes, as well as the LLCs, are required to produce an annual report.

Effect if Not Registering

If a foreign LLC chooses not to register itself with the Illinois Secretary of State office, then it may have to suffer through some consequences, such as:

  • The LLC may lose its right to legal representation in the Court and shall not be permitted to file a civil case in the State Courts.
  • Fines, interest, and back taxes will be imposed if the foreign LLC is not registered to do business in Illinois.

However, not being registered does not invalidate state-based business contracts or preclude such business LLC from defending state-based litigation.

Deceptive Business Act

The Illinois Consumer Fraud and Misleading Company Practices Act is a comprehensive piece of law aimed to protect consumers, borrowers, and business owners against fraud, unfair competition, and unfair or deceptive business practices. All people who incur damage as a result of a breach of the Act are subject to civil and criminal culpability, as well as a private right of action.

How Fast Can You Obtain EIN for Foreign LLC in Illinois

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

An EIN is required for operating a foreign LLC in Illinois. To obtain an EIN for a foreign LLC, you must complete and file an application with the state. Once approved, you can begin your operations. If your name is different from your own, you may use an assumed name. It is important to note that foreign LLCs have special rules and restrictions that apply in Illinois. Once you have an EIN, you can conduct business and operate your foreign LLC.

First, you should get a Certificate of Good Standing. This certificate demonstrates the legal status of your LLC and its compliance with the laws of the state where you’re registered. Different states have different procedures for obtaining a Certificate of Good Standing, but Illinois requires you to submit an original copy. If your certificate is more than 60 days old, you’re not eligible. Another important requirement for an LLC’s application is that the name is available. If it’s not, you must file an application and pay a fee of $5.

Once you’ve obtained an EIN, you should open a business bank account. Keeping separate accounts for your business and personal finances will make tax time easier and prevent you from commingling funds between the two. This could cause problems when filing taxes and could even be used against you in a court of law. Fortunately, this process is fast and hassle-free. So, whether you’re starting a new business or looking to update an existing one, an EIN will make everything easier.

One of the fastest ways to apply for an EIN is to submit an online application. All you have to do is enter the business name and address and the date you formed it. Once you’ve completed your application, you can download the EIN and confirmation letter instantly. Your EIN will stay with you and your business until you’re ready to use it. Once your application has been approved, you can use it to apply for bank accounts, open a business bank account, and provide information to vendors and customers.

Generally, the fastest way to obtain an EIN for an LLC in Illinois is to file online and pay for expedited processing. This method has the highest approval rate and is the quickest way to get an LLC approved. You can expect the fee to be between $40 and $500. However, you should keep in mind that Illinois business filing fees are higher than those of other states. A foreign LLC must also pay additional taxes to remain in compliance with federal requirements.

Besides filing an application online, you should also have a registered agent in Illinois. An Illinois registered agent is necessary for every LLC. If you don’t have a local agent, you can use a registered agent service. These services can help you maintain your LLC’s legal status by accepting official correspondence from government entities. It’s possible to obtain your EIN in Illinois within 24 hours if you do all the steps correctly.

FAQ

How to obtain EIN for foreign LLC in Illinois?

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 Illinois 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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