EIN for New Mexico Foreign LLC – Obtaining EIN For Foreign Entity


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To obtain EIN for New Mexico 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 New Mexico 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 New Mexico 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 Mexico– 
    • 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 Mexico

According to the New Mexico Limited Liability Company Act, if a foreign business LLC intends to transact its commercial operations in New Mexico, then it shall foremostly register itself with the state of New Mexico.

Transacting Business In New Mexico

The taxation aspect should also be given due consideration post the incorporation of LLCs. 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 the State of New Mexico, 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 Mexico, or engages a sales representative there, it is regarded to have a physical presence in the state.

Registering The Business

The foreign business LLC must file a New Mexico Foreign Limited Liability Company Application for Registration with the Secretary of State, Corporations Bureau, to register a foreign LLC in New Mexico.

The  Secretary of State office also requires a certificate of good standing or existence issued by the home state to approve a foreign qualification application. The foreign entity must also designate a registered agent in New Mexico on file at all times.

The LLCs are not obligated to file an annual report in New Mexico. New Mexico assesses a franchise tax if an LLC pays federal income tax.

Effect Of Non-Registration

A foreign LLC doing business in New Mexico is not permitted to file an action, suit, or proceeding in a New Mexico court unless it has registered. A foreign LLC that does business in New Mexico without a legal registration is liable to a civil penalty of up to $200 each year or portion thereof during which business was conducted.

A member of management of a foreign limited liability company is not accountable for its debts and liabilities just because it did business in New Mexico without being registered. However, not being registered has no bearing on the LLC’s obligations or its ability to defend a case in New Mexico.

New Mexico Deceptive Trade Act

The Uniform Deceptive Trade Practices Act, which codifies unfair trade practice safeguards in state legislation and prevents sellers from willfully deceiving purchasers, is equally enforceable in the State of New Mexico.

Based on reasonable grounds, the Attorney General can bring an action against any person who has breached the provisions of the trade practices, he or she may bring a civil action against that person. Any individual may be sued in the name of the state by the district attorney or a private citizen of New Mexico to prohibit any violations of the Article or prevent restricted businesses.

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

An EIN for foreign LLC in New Mexico can be obtained by immediately if applying online and by mail or fax it may take up to 1 week.

Before you can transact in the United States, your foreign LLC in New Mexico must obtain its EIN, which is a legal entity’s social security number. This number is required to conduct business, open a business bank account, and file taxes. Fortunately, you can obtain the EIN online, if you know where to look.

Creating a foreign LLC in New Mexico is easier than you might think. The first step is submitting the Articles of Organization to the New Mexico Secretary of State. Depending on the size of your business, this process can take three to five business days. You’ll also need to pay a registration fee.

Next, you’ll need to apply for a federal tax ID number. You can apply online or get a copy of it in the mail. While it’s faster to obtain an EIN online, you’ll still need to obtain a state tax ID before filing your New Mexico taxes. In addition, if you are an owner-employee, you may want to consider applying for S-Corp treatment. This type of tax treatment will allow you to save on self-employment taxes.

Once your company has an EIN, you’ll need to designate a registered agent in New Mexico. This will give your company the legal presence it needs to conduct business in the state. Your foreign LLC will not be required to file annual reports, but will need to designate a registered agent in the state.

Although obtaining a foreign EIN for your business is a tedious process, it is an essential part of starting a business in the United States. For this purpose, you can use an online service like Incfile. These companies will provide you with your EIN at a reasonable fee.

If you’re interested in operating your foreign LLC in New Mexico, you can apply online for registration. To do so, visit the New Mexico Secretary of State’s website. If you have a name, it’s best to use it for the registration application. You’ll need to provide the state where your foreign LLC was formed, the name of the foreign company, and the date the company was formed.

Once your company’s name is approved, you must choose a registered agent and office address. Having a registered agent in New Mexico ensures that important legal notices get to the right person. The registered agent must be a New Mexico resident, and the address should match the registered office address.

An operating agreement serves as the governing document for your LLC. It will set forth the formalities of the LLC, such as holding an annual meeting. In addition, the operating agreement is reviewed at the organizational meeting. The members of an LLC must file their articles of organization, maintain a company record, and obtain its EIN. The EIN is often required to open a bank account.

You can also create an anonymous limited liability company in New Mexico. This is a great option for businesses that do not want to be identified in public records. However, an anonymous LLC can’t avoid litigation. If it receives a lawsuit, it must forward it to its owners, and if it fails to do so, it could be held liable for a default judgment.

FAQ

How to obtain EIN for foreign LLC in New Mexico?

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 Mexico 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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