To obtain EIN for Oklahoma 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 Oklahoma 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
- Restrictions In Business For Foreign Entities In Oklahoma
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 Oklahoma 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 Oklahoma–
- 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.
Restrictions In Business For Foreign Entities In Oklahoma
While forming a foreign LLC in Oklahoma LLCs have to follow some rules and regulations. These restrictions or rules are basic guidelines that one must follow in order to start a foreign LLC in the state of Oklahoma. Here are some points to consider,
Transacting Business In Oklahoma
To transact business in Oklahoma LLCs have to register their business with the Oklahoma Secretary of State. To register the foreign LLC in Oklahoma, one has to submit a registration form along with the details of their LLC. Before you transact your business in Oklahoma, make sure you have the following,
- A physical address in Oklahoma
- A warehouse & store in Oklahoma
- An office in Oklahoma
- A sales representative from Oklahoma
These are mandatory to transact business in Oklahoma. Once you register your foreign LLC in Oklahoma, you must consider the State sales tax. For the state sales tax, one has to have these above-mentioned places/people in Oklahoma.
Registering The Business
Registering your foreign LLC in Oklahoma needs a certificate of authority just like other states. In the certificate of authority, one has to clarify a few details about their domestic as well as foreign LLC in Oklahoma. The following details should be included in the certificate of authority,
- Name of the LLC in the domestic state
- Name of the LLC in the state of Oklahoma (if different)
- Name and address of Oklahoma registered agent
- State where the LLC is formed
- Date of the LLC formation
- Email address of the concerned person of the LLC
- An authorized signature
A certificate of good standing is also needed for transacting business in Oklahoma. This certificate is issued by the Secretary of State of the domestic state. The certificate of good standing is a mandatory requirement to start a foreign LLC in Oklahoma.
Effect Of Non-Registration
If you don’t register your foreign LLC in Oklahoma, you will not be able to bring any lawsuit to the state. Though, you can defend a lawsuit. Like other states, in Oklahoma, failing to register a foreign LLC does not have any direct effect on members of the LLC.
Oklahoma Deceptive Trade Practice Law
In Oklahoma, there are some restrictions on Foreign LLC or any businesses. Deceptive Trade Practices are considered to be a misleading and false advertisement of the product/service you are offering. Along with the misleading information or advertisement, businesses that are involved in fraudulent activities, cheating customers, misselling, and advertising false information regarding any product or service are considered to be guilty. An attorney general can bring a lawsuit for deceptive trade practices. The civil penalty for this is up to $10,000.
How Fast Can You Obtain EIN for Foreign LLC in Oklahoma
If you’re wondering “How fast can you get an EIN for a Foreign LLC in Oklahoma?” you’re not alone. More than a half of all businesses in the United States don’t have one. Foreign LLCs, on the other hand, must have one in order to file the required forms and pay taxes. However, there are exceptions. For example, if you’re a non-resident alien, you can avoid having to obtain an EIN.
While foreigners that formed their LLC in Oklahoma can still obtain an EIN without an SSN or ITIN, the process is a bit different. To get an EIN for a foreign LLC in Oklahoma, you must mail or fax Form SS-4 to the IRS. You must make sure to fill out the form completely and correctly to ensure you get the correct EIN number. The IRS will then send a confirmation letter, known as a CP 575.
When applying for an EIN, you should choose the type of business you want to form. Generally, an LLC will be taxed as a partnership for business tax purposes. If you have two or more members, however, your LLC will still be taxed as a partnership. If you want to use an EIN for a different business, you must close your account with the IRS. The final step is to send a physical letter.
The process can take up to four weeks. EIN applications that are sent by mail will take about four weeks to process. The application assistant will ask you if you’d like to receive your EIN in the mail or digitally. If you want to receive your EIN immediately, choose the digital option. To receive it digitally, you’ll need Adobe Reader, so be sure to save the confirmation letter.
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 Oklahoma 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.