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


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To obtain EIN for Mississippi 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 LLC in Mississippi. 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 Mississippi 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 Mississippi– 
    • 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 Mississippi

Before you start your foreign LLC you must know the guidelines of transacting business in Mississippi. These are general guidelines and every LLC has to follow them in order to form a foreign LLC in Mississippi.

Transacting Business In The State of Mississippi

Foreign LLCs must register their foreign corporation with the State of Mississippi if they are transacting business” in Mississippi, according to Mississippi’s LLC Act.

Post the registration of LLCs; the taxation obligation should also be clarified. According to state rules, foreign LLCs must collect state sales taxes in their home state. A company must have a physical presence in—or a connection with—the state to be liable to collect state sales tax on sales to its inhabitants. If a foreign LLC opens a store, an office, or a warehouse in Mississippi, or hires a sales representative there, it is regarded to have a physical presence in Mississippi.

Registering The Business

A foreign LLC must file a Mississippi Certificate of Authority with the Mississippi Secretary of State in order to register in Mississippi.

The Mississippi Secretary of State requires a Certificate of Existence or Good standing issued by the home state in order to approve a foreign qualification application. In addition, a foreign LLC must also designate and keep a registered agent in Mississippi on file at all times.

Effect Of Non-Registration

A foreign LLC conducting its business in this state is prohibited from bringing any action, suit, or proceeding in any court in Mississippi unless it has registered. However, not having a proper registration does not invalidate any of your LLC’s contracts or prevent your LLC from defending Mississippi litigation.

A foreign limited liability company member is not accountable for the foreign limited liability company’s debts, obligations, or liabilities just because the foreign limited liability company did business in this state without being registered.

Mississippi Deceptive Trade Act

In line with the other State, Mississippi has also incorporated the Uniform Deceptive Trade Practices Act into their state laws. In Mississippi, false and deceptive trade practices are forbidden. Any individual who breaches the provisions of an injunction will face a civil penalty of not more than $10,000 per violation. The Attorney General may prosecute any offender of the laws in the name of the state.

How Fast Can You Obtain EIN for Foreign LLC in Mississippi

Before you can start running a business, you must obtain an Employer Identification Number (EIN). This number is necessary for every business entity. If your company employs people, you must apply for an EIN from the IRS. However, if you are a single-member LLC, you do not need an EIN. Filling out an application online or mailing it to the Mississippi Department of Revenue will help you apply for an EIN for free.

Upon completing the application form, you will be directed to a page where you can find more information about this process. If you are not sure what the information is, you can review the information on the page and choose the best option. You can then click the “Continue” button. Once you have completed the information requested, you will receive your EIN in a matter of minutes.

Once you have an EIN, you should set up a business bank account. This will help prevent identity theft and other issues with the tax department. In addition to establishing your bank account, you should also create a separate entity to receive your taxes. To avoid identity theft, you can apply for an EIN online. The IRS website is open Monday through Friday from 7 a.m. to 10 p.m. To obtain an EIN, you will need to register your business and open a business bank account.

You should know that you will need to file an annual report with the Mississippi Department of Revenue to get your tax clearance letter. Then, you can file your tax return online. Once you have the tax clearance letter, you can attach it to your reinstatement request. The entire process is easy and fast. Just follow the steps in the guide and you’ll be on your way to owning your new business.

FAQ

How to obtain EIN for foreign LLC in Mississippi?

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 Mississippi 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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