To obtain EIN for Indiana 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 Indiana 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 Indiana
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 Indiana 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 Indiana–
- 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 Indiana
To start your foreign LLC in Indiana, you have to keep a few things in mind. There are some rules and regulations to form a foreign LLC in Indiana. Here are some important things to know,
Transacting Business In The State Of Indiana
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 the particular state, a firm must have a physical presence in—or nexus with—the state, such as establishing a warehouse, a store, or an office in the State or employing a sales representative in the State.
Registering The Business
The Indiana Foreign LLC must file a Foreign Registration Statement with the State office. The business must file an Application for Certificate of Authority with the Business Services Division to register a foreign LLC in Indiana.
The business LLC must submit a Certificate of Good Standing or Existence issued by the Secretary of State office of the home state with the Application.
Effect Of Non-Registration
A foreign corporation undertaking business in Indiana without a certificate of authority is barred from pursuing a case in Indiana court until it receives a certificate of authority.
If a foreign corporation transacts business in Indiana without a certificate of authorization, it shall be liable to a civil penalty in the amount of ten thousand dollars ($10,000). The attorney general has the authority to collect any fines owed under this provision.
A foreign corporation’s inability to acquire a certificate of authority has no effect on preventing the foreign corporation from defending itself in an Indiana court case.
Deceptive Trade Practices
Indiana’s deceptive trade practices statutes follow the Uniform Deceptive Trade Practices Act, which strictly prohibits any deceptive trade activities to be undertaken by business entities. In case of a breach, the Attorney General has the authority to prosecute a business who violates this clause.
How Fast Can You Obtain EIN for Foreign LLC in Indiana
An EIN for foreign LLC in Indiana can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
If you are thinking about opening a foreign LLC in Indiana, the first step is to obtain an EIN. This is needed in order to conduct business, open a bank account and file taxes with the IRS. An EIN is basically like a social security number for businesses.
The best way to get an EIN is to apply online. You will need to provide personal information, including your Social Security number. You will also need your business’s address and founding date. The process is quick and easy. Once you receive your EIN, you can use it to apply for business loans, open a bank account and provide it to vendors. The EIN will stay with you for the duration of your business.
The next step in obtaining an EIN for your foreign LLC is to open a bank account for the business. Having a separate bank account for the business helps avoid commingling funds between personal and business accounts. This can lead to trouble with tax preparation, and in some cases, can be used against you in court. Additionally, you should open a business credit card.
Once you have completed the steps above, you will be able to start using the EIN to register your business in Indiana. You will also need to register a web domain for your business and contact a registered agent in the state. This agent will handle the business formation process for you.
An EIN is an essential document that your foreign LLC must have in order to conduct business in Indiana. It is also required for a foreign corporation to maintain a registered agent in the state. An EIN will help you legally transact in Indiana, Delaware, or any other state.
To search for the name of your foreign LLC, you can use an online tool that searches the state’s database of taxable entities. However, if the name is not available, you need the permission of the company owner in writing. You can file an application using the form for free if you wish.
If you are setting up an LLC in Indiana, you will need to file the Business Entity Report every two years. The report is available online and is due on the anniversary month of your LLC’s formation. You can file this report online or mail it in to the Indiana Secretary of State. However, filing it online is faster, more secure, and cheaper than filing it by mail. You will also need to prepare a $50 check or money order to pay the state.
If you are operating a business in Indiana, you will need to carry workers’ compensation insurance. If your business employs one or more employees, you will also need to apply for employment taxes. You must also establish an account on the Indiana INTax website. Once you have an account, you can manage your taxes and stay informed of upcoming reports.
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 Indiana 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.