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


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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. 

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:

  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 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

Before a company can become a foreign limited liability company in Indiana, it needs an EIN. An EIN is a unique number assigned to a foreign limited liability company. There are three ways to apply for a foreign LLC in Indiana. The fastest way is online; however, if you are unable to complete the application online, you can fax or mail it to the IRS. Both methods take between four and six weeks to process.

The first step is to apply for an EIN. You should know the requirements for forming a legal business entity in your state. You can find these requirements here. You can choose to use your mailing address or a standardized version. You will need to provide the name of the LLC. When entering an address, remember that the IRS limits the amount of characters allowed, so you must spell out or omit any special characters. Once you have filled out the form correctly, you will receive your EIN.

Once you have filled out the form online, the application assistant will ask you to choose how you want to receive your EIN. You can choose to receive the letter in digital format as a PDF file or in the mail. If you choose the former, you must select “Receive letter online” and click the Continue button. You can now download the EIN confirmation letter to your computer. You don’t need Adobe Reader to view it. Once you have the file, you should save it. You should also keep a copy of it as it will be needed if you need to file any other paperwork in the future.

FAQ

How to obtain EIN for foreign LLC in Indiana?

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 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.

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