EIN for Rhode Island Foreign LLC – Obtaining EIN For Foreign Entity


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To obtain EIN for Rhode Island 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 Rhode Island 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 Rhode Island 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 Rhode Island– 
    • 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 Rhode Island

Before you start your business in Rhode Island as a foreign entity you need to know what are the restrictions and rules. These basic guidelines are for all the foreign entities who are willing to start their business in Rhode Island. Here are some important notes,

Transacting Business In the State Of Rhode Island

To transact business in Rhode Island as a foreign entity, one has to register their LLC with the Rhode Island Secretary of State. Once registered the foreign LLC has to accept the state sales tax process in which the LLCs have to satisfy their existence in Rhode Island. In order to satisfy it, there are some requirements a foreign LLC in Rhode Island has to meet, 

  • A physical street address in Rhode Island 
  • A physical office in Rhode Island
  • A store and/or warehouse in Rhode Island
  • A sales representative in Rhode Island if your business involves sales

These are the general requirements all foreign LLCs should meet in order to transact business in Rhode Island. 

Registering The Business

Registering business in Rhode Island as a foreign entity is mandatory. To register with the Rhode Island Secretary of State a foreign LLC must submit the Application of Registration. The form is available on the SOS website. Registering a foreign LLC with Rhode Island SOS is more or less similar to the filing of Articles of Organization in the state. There are some important details about the LLC that you need to provide, 

  • The name of the LLC in the home state
  • The name of the LLC in Rhode Island (if different)
  • Home state name
  • Date of LLC formation in the home state
  • The name of the registered agent in Rhode Island
  • Street address of the registered agent in Rhode Island
  • Street address of the principal place of service in the home state
  • The mailing address of the LLC in Rhode Island
  • An authorized signature
  • A statement that clarifies whether the LLC is member-managed or manager-managed
  • If your foreign LLC is manager-managed then the list of names of all the managers. 
  • The effective date of registering your foreign LLC in Rhode Island
  • An authorized signature

These are the details one must provide in the application form while registering your foreign LLC with Rhode Island SOS. 

Effect of Non-Registration

If your LLC is not registered with Rhode Island SOS then your LLC won’t be able to bring any case or lawsuit under the Rhode Island state court. On the other side, as a member of the LLC, you won’t be liable for any debt by the LLC in Rhode Island. Though there is no direct personal liability to the members of the unregistered LLC, it is recommended to register your foreign LLC in Rhode Island for a hassle-free service of process.

Rhode Island Deceptive Trade Practice Act

Under Rhode Island law, any kind of deceptive trade practice is not considered. There is a list of activities that are prohibited under this act. The most common deceptive trade practice is false advertisement. Most businesses make false advertisements for their products/services. Try to bait the customers by showing false information or misleading advertisement. Selling old or damaged products r products from another company without letting them know is also considered to be a punishable offense. 

How Fast Can You Obtain EIN for Foreign LLC in Rhode Island

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

A Foreign LLC in Rhode Island must obtain an EIN before conducting business in the state. In order to be eligible for this number, the company must file a Certificate of Authority with the state’s Secretary of State. This certificate must remain current for at least sixty days, and the company must maintain a registered agent in Rhode Island.

Applying for an EIN is relatively easy. You can fill out the application online or in person. The process can take as little as 5 minutes. Once completed, you should receive your tax ID within an hour. If you file in person, you can expect to wait a little longer.

To get an EIN for foreign LLC in Rhode Island, you must choose a name and a registered agent. Your registered agent must be located in Rhode Island, have a recognizable address, and be available during business hours. The registered agent must also be willing to provide the state with any documents that may be needed. It is important that the registered agent’s name matches the business name, so your company can be recognized by the IRS.

After you’ve chosen your name, you’ll need to choose a domain name. The best domain names for foreign LLCs are those that include your business name. It’s important to ensure that the name you choose is legally available, because you might need it later.

The IRS will mail or fax you a confirmation letter within four to eight weeks. In the meantime, you can opt to cancel your EIN by writing to the IRS. You can follow the instructions provided in the letter. If you don’t want to wait to file your return, you can use a separate business bank account and open an LLC bank account in the state.

The process for obtaining an EIN for a Foreign LLC in Rhode Island varies depending on the type of entity you have. LLCs file the Application for Registration of a Foreign Limited Liability Company, while corporations file the Application for Certificate of Authority of a Foreign Business Corporation. Each of these applications requires filing fees. If your company has more than 75 million authorized shares, the filing fee will be higher.

Before you file your application, you’ll need to select a name for your LLC. The name should contain the phrase “Limited Liability Company” or an approved abbreviation of that term. In addition, you will need to select a registered agent. The registered agent must be an individual who is 18 years old, has a physical address, and can provide important legal documents for your company. The registered agent may be an LLC member.

The process of obtaining a tax ID number in Rhode Island has been simplified. You can apply online if you are a Corporation, LLC, or Non-Profit Organization. During the application process, you’ll need to provide information about your business and partners. In addition, you may want to consult a Tax ID Number Manual for help with the application process.

FAQ

How to obtain EIN for foreign LLC in Rhode Island?

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 Rhode Island 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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