EIN for South Carolina Foreign LLC -Obtain EIN For Foreign Entity


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To obtain EIN for South Carolina 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 LLC in South Carolina. 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 South Carolina 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 South Carolina– 
    • 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 South Carolina

The foreign LLCs in South Carolina are required to mandatorily register themselves with the State of South Carolina if they are “transacting business” in South Carolina, according to South Carolina’s LLC regulations.

Transacting Business In South Carolina

Further ahead, post the incorporation of foreign LLC, their position with regards to the subject of taxation must be addressed. According to state rules, foreign LLCs must collect state sales taxes in their home state. For a foreign LLC to be liable to collect state sales tax on sales to its residents, 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 South Carolina or hires a sales representative there, it is regarded as having a physical presence.

Registering The Business

The South Carolina Foreign LLC must file an Application for Certificate of Authority with the South Carolina Secretary of State, Business Filings Division, in order to register a foreign corporation in South Carolina.

The Secretary of State Office in South Carolina requires a Certificate of Existence or Good Standing issued by the home state to approve a foreign qualification application. The foreign LLC must also hire a registered agent in South Carolina who shall act as the official communicator between the firm and the Secretary of State office.

The Secretary of State requires an initial annual report when filing for-profit corporations alone. The Secretary of State does not require an annual report.

Effect Of Non-Registration

If a South Carolina foreign LLC starts its business operations in the State without registration, then such entity may have to face the following consequences as per the South Carolina Code of Laws, Title 33, Chapter 15, Article 1, Section 33-15-102:

  • Such a business LLC shall be barred from taking any action, filing a suit, or maintaining a proceeding until it has registered and paid all fees for the time it performed business there without being registered.
  • The State’s Court of Law may also stay all the proceedings concerning such a business LLC until the firm obtains the certificate.
  • Such foreign Corporation may also be liable to civil penalties to the tune of $10 per day and upto $1000 in each year. The Attorney General may collect all the penalties and fines imposed on the LLC.
  • However, the LLC’s contracts will not be invalidated or prevented from defending a lawsuit in South Carolina even though it is not registered.

South Carolina Deceptive Trade Act

The South Carolina Unfair Trade Practices Act regulates the business practice standards to be implemented in the State. It strictly prohibits any deceptive behavior, misrepresentation to consumers, fraud, etc. The Unfair Trade Practices Act forbids unfair competition and unfair or deceptive actions or practices during any business activities, and it targets both consumer protection and anti-competitive behavior.

Attorney general, any individual who has suffered a determinable loss, the solicitor, the county attorney, or the city attorney, with the attorney general’s prior consent, may file a lawsuit in state court against the offender.

How Fast Can You Obtain EIN for Foreign LLC in South Carolina

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

If you have formed a foreign LLC in South Carolina, you must obtain an EIN. You must have an EIN in order to conduct business, open a business bank account, and report taxes to the IRS. An EIN is also very useful when applying for bank accounts and obtaining business loans. To learn more about how to obtain an EIN, read our article. Then, you’ll be able to determine how fast you can obtain one.

After completing the online application, you can begin the process. Select the business type, which must be a foreign company, and fill out the online questionnaire. You’ll also have to provide your name and social security number. The process takes about four weeks to complete. The EIN will take up to four weeks to be processed if you mail it. Alternatively, you can download the form from the Start Up page of the Dodge Legal Group’s website.

If you’re planning to incorporate your foreign LLC in South Carolina, you’ll first need to fill out the Application for Certificate of Authority. Once this is approved, you’ll need to obtain a Certificate of Good Standing and an Existence from the South Carolina Secretary of State office. After you’ve obtained these documents, you’ll need to hire a registered agent in South Carolina. The registered agent will be the company’s official contact with the Secretary of State office. You must also obtain a retail license, which is called a use tax registration. If your business has multiple retail locations, you’ll need to acquire separate local tax IDs for each location.

If you’re in business outside of the United States, you can obtain an EIN for your foreign LLC in South Carolina. A foreign entity can use the EIN to hire employees and report taxes. If it has employees, it needs an EIN as well. If it doesn’t, you can use your own Social Security Number as well. The process is much simpler with an EIN.

Once you have formed your foreign LLC, you’ll need to file articles of organization with the SOS. This process costs $110, which includes filing articles of organization. You’ll need an operating agreement to manage your LLC and decide how disputes are resolved. Operating agreements also help keep your LLC separate from your personal finances. They’re a necessity for multi-member LLCs and will prevent conflicts between members in the event of a member’s disability.

The IRS website only works during certain hours, so if you’d like to use it outside of office hours, you’ll need to call the IRS directly. However, if you’d rather hire a professional, you can also look for free templates and corporate attorneys who can draft your operating agreement. Remember that it’s best to keep your personal finances separate from your business’s, because you’ll be losing liability protection if you do so.

If you’re setting up a foreign LLC in South Carolina, you’ll need to find a registered agent for it. The registered agent will handle legal notices on your behalf. It’s also a good idea to get a website domain name registered with the state. It will also help you with branding and will make it easier for your customers to find your business online. Finally, every type of incorporated business in South Carolina has a registered agent.

FAQ

How to obtain EIN for foreign LLC in South Carolina?

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 South Carolina 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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