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


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To obtain EIN for Kansas 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 a Kansas 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 Kansas 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 Kansas
    • 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 Kansas

When a foreign LLC is willing to start its business in Kansas, it has to be well aware of the rules for foreign entities in the state. The entity must follow the guidelines to form a foreign LLC in Kansas. Here are some important points to note,

Transacting Business In the State of Kansas

Kansas State law governs when foreign LLCs are required to collect sales tax. To be obligated to collect sales tax from Iowa citizens, a firm must have a physical presence or nexus in the state. In most cases, this means that the LLC must have a warehouse, a store, or an office functioning in the State or employing a sales representative in the State.

Registering The Business

The business entity must file a Kansas Foreign Limited Liability Company Application with the Kansas Secretary of State Office to register a foreign LLC in Kansas. In addition, proof of existence or a certificate of good standing should be attached with the registration application, issued by the state where the business is originally registered. 

Effect of Non Registration

If your Foreign LLC is not registered under Kansas Law, then the following consequences may arise for such a business LLC:

  • It shall not be permitted to file a lawsuit in the state.
  • The Kansas attorney general can file a lawsuit to prevent such LLC from conducting business in the state. 
  • Such a business LLC will be accountable for costs and penalties for all years it was supposed to be registered but wasn’t.

However, the LLC’s contracts will not be invalidated or prevented from defending a lawsuit in Kansas if it is not registered.

Kansas Consumer Protection Act

The Deceptive Acts and Practices under the Kansas Consumer Protection Act state that no business entity shall engage in any deceptive act or trade practice in connection with a consumer transaction. Any such prohibited act is strictly regulated by the State and is penalized.

How Fast Can You Obtain EIN for Foreign LLC in Kansas

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

Obtaining an Employer Identification Number is essential to a limited liability company. It serves as a federal tax identification number and enables an employer to set up payrolls and tax records. EINs are also used by banks to open business accounts. An EIN is also required to apply for credit and loans, separating the personal finances of a business from those of its employees. EIN’s are available at no cost from the Internal Revenue Service. You can find the information you need online and obtain an EIN instantly.

An EIN is also required by law if you are hiring employees. The number is used by the IRS to supervise your business finances. You can also apply for an EIN by mail if you do not have access to the Internet. In addition to your EIN, you will also need to have a registered agent for your LLC. A registered agent is an individual or a corporation that receives important legal documents on behalf of your LLC.

You will also need to file an annual report with the Secretary of State if you are a Kansas LLC. The report should be filed by the 15th day of the fourth month following the end of the company’s fiscal year. If you do not file your report, your LLC will be disbanded after 90 days. If you have employees, your LLC will be required to remit state withholding taxes and self-employment taxes. You can set up an account with the Kansas Department of Revenue Customer Service Center to pay these taxes. You will need to file Form CR-16.

A Certificate of Good Standing is a good idea if you have a foreign limited liability company. It is a certificate of authority issued by the state. It is a certificate that proves your LLC has met a minimum of certain requirements. You can obtain this certificate by mailing a fax or by submitting your application online.

A Resident Agent is a person or business entity that serves as the central point of contact for the state. You can have a resident agent who is a manager or an individual within your company. The state requires that the Resident Agent be a resident of Kansas. They are required to be at least 18 years of age. The resident agent is also required to have a physical address in the state. The best way to find a Resident Agent is to search online. You may also find a Resident Agent for your company in the state where it is incorporated.

You can also use an EIN to apply for state licenses and bank accounts. The IRS offers free EIN’s to individuals and companies that meet certain requirements. The EIN is also used for filing tax returns.

The Kansas Department of Revenue issues business tax licenses. The state of Kansas has a relatively small population. However, the state has a business friendly environment. The state provides information on how to file for business tax licenses on the Department of Revenue’s website.

FAQ

How to obtain EIN for foreign LLC in Kansas?

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 Kansas 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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