To obtain EIN for North Dakota 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 North Dakota 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 North Dakota
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 North Dakota 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 North Dakota–
- 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 North Dakota
When a foreign business LLC transacts its business in North Dakota, then it must register itself with the Secretary of State Office, North Dakota, according to North Dakota’s Limited Liability Company Act.
Transacting Business In The State Of North Dakota
After the incorporation of LLCs, the subject of taxation of the foreign business LLCs must also be addressed. 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 North Dakota or hires a sales representative there, it is regarded as having a physical presence.
Registering The Business
The foreign LLC must file a North Dakota Certificate of Authority Foreign Limited Liability Application with the North Dakota Secretary of State to register a foreign LLC in North Dakota.
The Secretary of State of North Dakota requires a certificate of good standing or equivalent issued by the home state to approve a foreign qualification application. Within 90 days, the certificate must be current. In order to be in good standing, a foreign entity must designate and keep a registered agent in North Dakota on file at all times to act as the official communicator of the Company with the State Authorities.
Effect Of Non-Registration
A foreign LLC doing business in North Dakota is prohibited from filing any action or suit until it has duly registered and paid all fees for the time it did business there without being registered.
It might also face a civil penalty of up to $5,000 and be barred from conducting business in the state until the fines are paid. A civil penalty of up to $1,000 will be imposed on any LLC governor, member, or agent that permits directs, or engages in the conduct of business in North Dakota without a certificate of authority.
However, the lack of a certificate of authority has no bearing on the LLC’s contracts or its ability to defend a case in North Dakota.
North Dakota Consumer Protection Act
In conjunction with the sale or advertisement of products, the Consumer Protection and Antitrust Division (CPAT) of the North Dakota Attorney General enforces the state’s deceptive trade practices statutes. Consumer fraud crimes are investigated and prosecuted by the division, which also resolves individual consumer complaints and created public awareness on how to prevent being a victim of fraud. CPAT is the state’s clearinghouse for identity theft prevention, complaints, and victim aid, as well as enforcing the state’s Do-Not-Call legislation.
The attorney general, the state’s attorney, and anybody who has been harmed may file a lawsuit in state court.
How Fast Can You Obtain EIN for Foreign LLC in North Dakota
An EIN is required to register a foreign business. You can apply for one online, or you can call the IRS and request an EIN over the phone. In North Dakota, you can apply for an EIN online as well. You’ll need to complete Form SS-4, which is the IRS’s EIN Confirmation Letter, and submit it in a certain way. The process should take approximately four to five weeks.
The IRS website is only open during certain hours, and you can’t always access it at the same time as the IRS. The EIN application assistant can check your address to make sure it matches what is on your records. You can also use your mailing address or use a standardized one, if you wish. The legal name of the business must be entered correctly. If you’re unsure of how to spell your legal name, you can find more information on the IRS’ EIN FAQs.
In order to get an EIN, you must be a member of an LLC. The responsible party will need a valid tax ID number or an Individual Taxpayer Identification Number. Your information must match the records of the IRS, so be sure to provide it accurately. If you aren’t, the application will not progress. The application fee is $135. You’ll also need to pay a small fee for trade name registration.
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 North Dakota 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.