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


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To obtain EIN for Minnesota 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 Minnesota 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 Minnesota 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 Minnesota– 
    • 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 Minnesota

To start a foreign LLC in Minnesota, one needs to know some rules. There are some basic guidelines all the LLCs have to follow if they are willing to form a foreign LLC in Minnesota. Check out the following points mentioned below,

Registering The Business

The foreign LLC must file a Minnesota Certificate of Authority with the Minnesota Secretary of State, Business Services, to register their LLC and transact businesses in Minnesota. The Secretary of State Office in Minnesota does not mandate submission of any Certificate or document papers to approve a foreign qualifying application from the home state. 

Effect Of Non-registration

Any unregistered foreign LLC doing business in Minnesota is not permitted to file any action, suit, or proceeding in any court in the State unless it first obtains a Certificate of Authority.

  • Furthermore, if the LLC transacts or does business in Minnesota without authorization, it will be responsible for the costs it would have owed if it had been registered.
  • Additionally, the LLC or any LLC member and management that transact business in the state are subject to fines.
  • However, the lack of a valid Certificate of Authority does not prevent your LLC from defending lawsuits in Minnesota, nor does it render any of your LLC’s contracts void.
  • Members of your LLC are also not accountable for the debts and obligations of the LLC just because the LLC did business in Minnesota without a legal certificate of authority.

Minnesota Uniform Deceptive Trade Practices Act (UDTPA)

The Minnesota Antitrust Law of 1971 defines a number of different violations that are considered unfair trade restraint, discriminatory practices, and acts in violation of the law (a part of the larger Restraint of Trade statute). According to Minnesota state law, unfair or deceptive trade practices include:

  • Selling goods or services for a lower price than they are worth
  • Consumers are being misled about the quality, components, and provenance of goods.
  • Cigarette sales that are unequal (selling at less than cost, etc.)
  • Unreasonable trade restrictions based on collusion with other enterprises
  • Food product monopolization

The Attorney General may also initiate a civil action in district court on behalf of the state for an injunction barring any violation by the offending businesses.

How Fast Can You Obtain EIN for Foreign LLC in Minnesota

To form a foreign LLC in Minnesota, you must apply for an EIN. The IRS provides four different methods to apply for an EIN. You can apply on line, by phone, by fax, or by US mail. It will take between 4 and 6 weeks to receive your tax ID. You can apply for an EIN online to save time and money. But be aware that the traditional method is less convenient and takes longer to process.

Filing articles of organization in Minnesota is easy and fast. You can file online or visit a local office. Either option will cost you between $155 and $200. Electronic and in-person filings are processed quickly, while mailed documents take longer to review. To become a foreign LLC in Minnesota, you must file for a Certificate of Authority to Transact Business in Minnesota (LLC). Filling out the form requires you to enter all the relevant business information and name. If you have a different name, you must register it as well.

To start your business, you must apply for an employer identification number (EIN). This number will be used for bank accounts, income tax filings, and employment tax filings. It will also be used to register your business with state labor and tax departments. You can also obtain an EIN by phone or through a third-party designee. The process can take a while, but once you have the EIN, you’ll be able to start doing business in no time.

FAQ

How to obtain EIN for foreign LLC in Minnesota?

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 Minnesota 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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