To obtain EIN for Nevada 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 Nevada 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.
On this page, you’ll learn about the following:
- What is a Foreign Limited Liability Company?
- What is an EIN (Employer Identification Number)?
- EIN for a Foreign Entity or Foreign LLC
- Restriction In Business For Foreign Entities In Nevada
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 Nevada 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:
- 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.
- 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.
- 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.
- 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.
- 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:
- 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.
- 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
- 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
- Ways to apply for EIN Nevada–
- 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 Nevada
The Nevada Foreign LLC must register itself with the state of Nevada if it intends to transact its business in Nevada, according to Nevada’s LLC Act.
Transacting Business in The State of Nevada
To determine the subject of taxation by the foreign entities is another important aspect of business restrictions. According to state rules, the foreign LLCs must collect state sales taxes in their home state. To be liable to collect state sales tax on sales to its residents, a corporation must have a physical presence in—or a nexus with—the state. If a foreign LLC opens a store, an office, or a warehouse in Nevada, or hires a sales representative there, it is regarded to have a physical presence in Nevada.
Registering The Business
The foreign LLC must file a Nevada Qualification to Do Business in Nevada with the Nevada Secretary of State, New Filings Division, in order to register a foreign corporation in Nevada.
For LLCs, the Nevada Secretary of State does not require any documentation from the home state. However, the foreign entity must designate and keep a registered agent in Nevada on file at all times to act as their official communicator with the State Authorities.
Effect Of Non-Registration
Every foreign LLC conducting business in this state that fails to register with the Secretary of State faces a fine of $1,000 to $10,000, which can be collected in a court of competent jurisdiction. Any foreign LLC conducting business in this state without first registering with the Secretary of State is barred from bringing or maintaining any action, suit, or proceeding in any court in this state until it has done so.
Nevertheless, the non-registration of the LLC does not invalidate its contracts or preclude it from defending a lawsuit in the state.
Nevada Deceptive Trade Act
In Nevada, a deceptive trade is any action intended to deceive the consumer. The state has developed a comprehensive set of deceptive trade practices rules that cover a wide variety of topics and clarify the penalties that will be imposed if a violation occurs. The following are examples of such activities:
- Failure to notify customers about the product or service
- Making misleading claims about the capabilities of a product or service
- Presenting an item as fresh despite the fact that it has been used
Upon the Commissioner’s request, the Attorney General may file a lawsuit in the name of the State of Nevada against anybody who has engaged in deceptive commercial practices.
How Fast Can You Obtain EIN for Foreign LLC in Nevada
An EIN for foreign LLC in Nevada can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.
If you want to form a Nevada foreign LLC, you need to know how fast you can obtain an EIN. While filing paper forms takes about two weeks, you should also allow time for mailing. You can also apply for an expedited service, which will process your request within one business day. You should also consider the fact that Nevada requires foreign corporations to publish an annual report. Although you may think it is convenient to conduct business and personal transactions through the same bank account, Nevada law requires that the registered agent maintain a separate account for business activities.
If you’re planning to establish an LLC in Nevada, you should be aware that you must first register with the Nevada Secretary of State and appoint a registered agent service. You also need to pay a high registration fee and an annual renewal fee. Additionally, you must pay taxes to your home state as well. However, this process is fairly easy. And it can be done online.
The Secretary of State has a database that lists available names. If the name you’ve selected isn’t available, you can always change it. In order to make sure that you have a legitimate business name, you should file an application stating your registered agent. Once you have registered an agent, you can file the necessary forms with the Secretary of State. However, if you’re a foreign LLC, you’ll need to file a form saying that you’re willing to accept the business name.
Once you’ve filed your documents, the next step is to wait. The Secretary of State updates the processing dates based on the date of receipt. Filing an online application will usually result in the same day processing. Furthermore, Nevada’s low taxes and efficient company formation make it a top choice for businesses looking to register their businesses. And since this state has low taxes, businesses are able to save money by avoiding costly tax preparation and filing fees.
If you are planning to expand your business to Nevada, you should consider forming a Nevada Foreign LLC. This type of LLC requires a state license, which is mandatory. Besides this, you must also file an annual report, which is required by law. You can use an online service called Incfile to obtain an EIN. You will also need an Operating Agreement, which explains the rules and procedures of your business.
If you plan to incorporate an LLC in Nevada, you should also file an operating agreement. This document protects your interests and those of other parties. It also helps the IRS identify your business, which will save you money on tax returns. However, you should also remember that if you have more than one member, you will need to apply for an EIN. You can also obtain a Social Security Number to register your Nevada foreign LLC.
The next step in the process is to choose a name for your foreign LLC. The process can take several days, but it is important to remember that the name you choose is still available in Nevada. Remember that if your name is available in Nevada, it is still not available in other states. You must make sure that the name you choose is available in Nevada before filing it. You can then file your paperwork online and pay the required filing fee.
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.
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.
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.
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.
Obtaining EIN for any Nevada 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.