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

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To obtain EIN for Maine 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 Maine 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 Maine 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 Maine– 
    • 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 Maine

When you start an LLC in Maine you have to follow certain guidelines. The same thing is applied to foreign LLCs. If you are willing to start a foreign LLC in Maine, you must know the following points,

Transacting Business In the State Of Maine

In case a Maine Foreign LLC wants to transact its business operations in Maine then it shall foremost register itself with the Secretary of State Office, under Maine’s Limited Liability Company Act.

For the collection of State Sales Tax, the State Regulations determine the position for foreign LLCs. According to state regulations, foreign LLCs are required to collect state sales taxes in their home state. However, such foreign LLCs are liable to collect state sales tax on sales to their residents, when it has a physical presence in the state. In the State of Maine, a foreign LLC is considered to have a physical presence in Maine if it installs a store, an office, or a warehouse there, or hires a sales representative there.

Registering The Business

The foreign LLC must file the Application for Authority with the Maine Secretary of State, Division of Corporations, to register itself in Maine. The application must also include a Certificate of Existence or Good Standing, duly authenticated by the Secretary of State Office of the Home State. The LLC must also hire a Registered Agent in the State to handle their official paperwork with the State Office. 

Effect of Non-Registration

If the Foreign LLC is not registered under Maine law, then it may suffer through the following consequences:

  • In order to recover debts, the business LLC will not be allowed to initiate a case in the state. The right to legal representation shall be forfeited by such a non-registered foreign LLC.
  • A civil penalty of $500 is imposed on a foreign limited liability company for each year it operates without registration. 
  • The Attorney General can initiate an action against such violators, and the civil penalty may be recovered.
  • However, the lack of a proper assertion of authority has no bearing on such LLC’s actions (such as contracting) or its ability to defend a case in the state.
  • A member or agent of a foreign limited liability company is not accountable for the foreign LLC’s debts, obligations, or other liabilities just because the LLC conducts business in this state without a statement of foreign qualification.

Maine Unfair Trade Practice Act

The Maine Unfair Trade Practices Act (UTPA) protects its consumers from businesses that engage in unfair or misleading business practices. It prohibits unfair and deceptive trade or commerce practices by the business LLCs.

When the Attorney General determines that enforcement action is in the public interest, he or she is responsible for enforcing the law. Consumers can also file their own UTPA lawsuits in Small Claims Court, District Court, or Superior Court to seek remedy against such business LLCs. 

How Fast Can You Obtain EIN for Foreign LLC in Maine

You may have heard that obtaining an EIN for your Foreign LLC in Maine is relatively easy. This is largely because this number is essentially your business’s social security number, and you can complete the application free of charge on the IRS website. It is also important to open a business bank account as soon as possible, so that your personal expenses are separate from those of the business. Keeping these separate accounts is important for maintaining the corporate veil and protecting your personal assets from creditors.

If you do not own a bank account yet, you can still open one as soon as you register your foreign LLC. The EIN is much like your business’s social security number, which you will need to conduct business, open a bank account, and file taxes with the IRS. By opening a bank account for your business separately, you will have a separate identity for your business and will be much easier to file your taxes.

After obtaining a business name, you must obtain an EIN from the Maine Department of State. The state will look at whether the business name is already registered in another state. It is also wise to use an online search engine like GoDaddy to check whether your chosen business name is available. You will have to provide this certificate to the state, and you can also file a lawsuit if you decide to take legal action in Maine.


How to obtain EIN for foreign LLC in Maine?

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 Maine 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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