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


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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. 

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:

  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 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.

Getting an EIN for a foreign LLC in Nevada can be done in a few short weeks. This is a very convenient option, especially for new business owners who may be interested in saving money on their state taxes. However, you should keep in mind that there is a significant amount of paperwork involved in obtaining an EIN for a foreign LLC.

An EIN, or Employer Identification Number, is a nine-digit number assigned by the Internal Revenue Service. An EIN is needed to open a business bank account, file taxes, and other business related matters. Some vendors may require an EIN for a business transaction. If you don’t have one, you can apply online, or you can mail in a payment. The payment should be made payable to the Internal Revenue Service.

If you plan to hire employees, you will also need to apply for an Employer Identification Number. This is required in order to hire employees and make payroll for them. If your business has income that is substantially connected with the United States, you will also need to file a tax return.

The EIN is assigned using the proper procedures for your entity type. For example, a single member LLC can apply for an EIN online, but a corporation or other entity will need to file by mail. Using the Internet is generally the fastest way to apply for an EIN. If you are not eligible for an Internet application, you can mail in the application, and it will be processed in four weeks. If you have questions about the application, contact the Internal Revenue Service.

You may also need to obtain a certificate of good standing for your foreign LLC in Nevada. This certificate must be updated within 90 days. The Certificate of Good Standing is a document that will be reviewed by the Nevada Secretary of State.

In addition, you will need to obtain a registered agent for your business. A registered agent is someone who has a physical address and is registered with the state. The cost for a registered agent will range from $40 to $200 per year. You will also need to file an FBAR form, or Foreign Bank Account Report, if your business has more than $10,000 in a foreign bank account. An FBAR is a one page report that is used to notify the IRS of your business’s foreign accounts.

If you want to file your articles of organization online, you can go to the Nevada Secretary of State website. Once you have completed your articles of organization, you can submit them in person, mail them, or fax them. You can also request an EIN, which can be processed through the same website.

If you need to find out how fast you can get an EIN for a foreign LLC in Las Vegas, you will need to file Articles of Organization in the state where you do business. However, you will also need to pay a registration fee and an annual renewal fee.

FAQ

How to obtain EIN for foreign LLC in Nevada?

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 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.

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