EIN for New Jersey Foreign LLC – How to Obtain EIN For Foreign Entity

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To obtain EIN for New Jersey 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 New Jersey. 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 New Jersey 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 New Jersey– 
    • 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 New Jersey

According to the LLC Act, a foreign LLC can transact its business in New Jersey after it has registered itself with the state of New Jersey.

Transacting Business in the State of New Jersey

The LLCs are also subject to different taxes after their incorporation. According to state rules, Foreign LLCs must collect state sales taxes in their home state. To be liable to collect state sales tax on sales to its residents in New Jersey, the company must have a physical presence in—or a connection with—the state. If a foreign LLC opens a store, an office, or a warehouse in New Jersey, or hires a sales representative there, it is regarded to have a physical presence in the state.

Registering The Business

The New Jersey Foreign LLC must file a New Jersey Registration Application with the New Jersey Secretary of State, Business Registration Application, to register a foreign corporation in New Jersey.

The New Jersey Department of Treasury requires a certificate of good standing or its equivalent from the home state in order to approve a foreign qualifying application. The foreign entity must also appoint a registered agent in New Jersey on file at all times. Every year, all New Jersey companies, LLCs, charities, LPs, and LLPs are obliged to file an annual report with the state of New Jersey.

Effect Of Non-Registration

If the Foreign LLC is not registered with the Secretary of State in New Jersey, the company LLC will not be authorized to file a lawsuit in the state to collect debts. Because a foreign limited liability corporation conducts business in this state without a declaration of a foreign qualification, a member or agent of the foreign LLC is not liable for the foreign LLC’s debts, obligations, or other liabilities.

The lack of a legitimate claim, on the other hand, has no influence on such LLC’s activities (such as contracting) or capacity to defend a lawsuit in state court.

New Jersey Deceptive Trade Act

New Jersey does not follow the Uniform Deceptive Commercial Practices Act when it comes to regulating business practices. Any conduct in connection with the sale or advertisement of any item or real estate with the intent to deceive others into relying on it shall be penalized. The Attorney General can prosecute violators of any of the provisions of this Law. Private parties who have been harmed by fraudulent corporate activities can sue for monetary compensation.

How Fast Can You Obtain EIN for Foreign LLC in New Jersey

An EIN is required to operate a company in the United States. There are different processes that can help you obtain an EIN, including online applications. To get an EIN for a foreign LLC in New Jersey, you must first form the foreign LLC. The next step is applying for a taxpayer identification number (EIN). Once you have your tax ID, you need to send it to the IRS.

You can either file your Certificate of Formation by mail or online. Filing your Certificate of Formation online is faster than filing by mail, but filing it by mail takes a little more time. You can get your certificate approved within a day or two. After approval, you will need to file your Tax Registration Form (Form NJ-REG). The Division of Revenue website can provide you with the forms that you need to file.

If your foreign LLC is not owned by a US corporation, you cannot get an EIN for the entity online. To apply, you must fill out Form 2553, which requires a few more documents. If your foreign LLC is a single-owner LLC, you will be taxed at the individual level. In contrast, if you are part of an LLC with multiple members, you will need to report your earned shares, and pay a $150 partnership filing fee every year. The IRS will tax your LLC as a corporation if you sell taxable items in the state, and you will need to collect New Jersey sales tax.

To get an EIN for a foreign LLC, you must first file a Certificate of Authority with the state. You can file this form by mail or in person. Afterwards, you must pay for the services of a Registered Agent. These services cost money, but you will get instant online confirmation and a printable certificate. However, you must mail in the Certificate of Formation and a certificate of good standing from the home state. The entire process takes about three to 10 business days.


How to obtain EIN for foreign LLC in New Jersey?

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 New Jersey 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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