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


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To obtain EIN for Oregon 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 Oregon 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 Oregon 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 Oregon– 
    • 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 Oregon

In Oregon, for a foreign LLC, there are some rules. In order to start your business as a foreign entity in Oregon, you have to follow these general guidelines. Before you head to transact your business as a foreign entity in Oregon, here are some important points to note,

Transacting Business In Oregon

To transact business in Oregon, one has to register their foreign LLC with the Oregon Secretary of State. After that, they can transact their business in the said state. After registration, the state sales tax needs to be paid. That will be possible if the LLCs meet certain requirements. The requirements are as follows, 

  • A physical street address of the business in Oregon
  • A warehouse and/or a store in Oregon
  • A registered office in Oregon
  • A representative for sales in Oregon

Any foreign LLC, willing to transact business in Oregon, has to meet these requirements. Basically, the foreign entity has to have an existence in Oregon to transact business in the state.

Registering The Business

To register the Oregon foreign LLC with the Secretary of State, one has to produce the Application for Authority to Transact Business — Foreign Limited Liability Company. This application is mandatory to transact business in Oregon as a foreign entity. It needs certain details about your business. The application of authority is a similar document like articles of organization in the formation state. The details LLCs need to provide the application of authority are, 

  • The name of your LLC in the home state
  • The name of your LLC in Oregon (if different)
  • Home state name
  • Date of the LLC formation in the home state
  • Duration of the LLC
  • The statement that states the requirements for ORS 63.714(3) are completed. 
  • Name and address of the registered agent in Oregon
  • Authorized signature
  • Address of the LLC’s principal place of business
  • Address of the office where Secretary of State sends legal documents

These details should be submitted in the application to register your foreign LLC in Oregon. 

Effect Of Non-Registration

Foreign LLCs that do not register or have authority in transacting business in Oregon are prohibited from bringing up any lawsuit to the state court. They can defend but cannot bring a lawsuit if not authorized in the state. On the other side, the members are not liable for any debt of the LLC in Oregon even when it is not registered or authorized. 

Oregon Deceptive Trade Practices Act

In Oregon, like any other state, there are some major restrictions in transacting certain kinds of activities. One of them is a deceptive trade practice. Any company/business that puts up a false advertisement or misinformation about the product/services will be considered under this act. If your business is involved in selling damaged or old products by misleading customers, then also, it will be considered a crime under this act. In Oregon, involvement in such deceptive trade practices may bring a penalty of up to $200 or the cost of damage whichever is greater. 

How Fast Can You Obtain EIN for Foreign LLC in Oregon

If you are a foreign business, you can still apply for an EIN for your foreign LLC in Oregon, even without an SSN or ITIN. All you have to do is file Form SS-4 with the IRS, and then mail or fax it to them. While you can still do this over the phone, you should definitely do it by mail. The IRS has stopped accepting applications for EINs by phone, so you need to mail your request as soon as possible.

If you do not have an EIN yet, you can write “Applied for” in the space marked for an EIN. Do not use your social security number; you should write “Applied For.” You will also need to mail a payment to the state service center. Make your check payable to the Internal Revenue Service, and include your name and address as it appears on your SS-4, the type of tax you plan to file, the period covered, and the date of your application.

The first step in starting your business is getting your EIN. You can do this by setting up a social media profile and website domain, both of which will help spread the word about your business. In addition, you can use social media accounts to build brand trust and authority. You can do this while completing the other steps for LLC formation. This is an excellent option if you want to establish your business in several states.

FAQ

How to obtain EIN for foreign LLC in Oregon?

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 Oregon 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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