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


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To obtain EIN for Utah 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 Utah 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 Utah 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 Utah– 
    • 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 Utah

As per the Utah Limited Liability Company Act, a foreign company should mandatorily register itself with the State of Utah if it intends on starting its foreign business operations in the State.

Transacting Business In The State of Utah

Further, post the incorporation of LLCs, the position of the foreign LLCs concerning taxation should also be determined. As per the State practice, the foreign LLCs must collect state sales taxes in their home state. A business LLC shall be liable to collect State sales tax in the State of Utah if they have a physical presence in—or a connection with—the State, for instance, if a foreign LLC opens a store, an office, or a warehouse in Utah, or hires a sales representative there, it is regarded to have a physical presence in Utah.

Registering The Business

Foreign business LLC must file an Application for Authority to Conduct Affairs with the Utah Division of Corporations in order to register as a foreign corporation in Utah.

The Utah Department of Commerce requires a certificate of good standing or Certificate of Existence from the home state in order to approve a foreign qualification application. The Certificate must be issued within 90 days of the date of the registration application. In addition, the foreign entity must designate and keep a registered agent in Utah who shall act as the official communication point of the firm with the State authorities.

Effect Of Non-Registration

If the Utah Foreign LLC starts its business without registration with the Secretary of State office, then it shall have to undergo the following situations:

  • Such a Utah foreign LLC shall not be permitted to initiate a legal action, suit, or maintain a proceeding in the Court of Law in the State. Unless the LLC has first registered with the Utah Secretary of State, it shall lose its right to legal representation.
  • Because the LLC performed its business in the State without a formal registration, thus a member of such a foreign LLC shall not be held liable for the limited liability company’s obligations and liabilities.
  • Nevertheless, the failure of a foreign LLC to register in Utah does not affect the legitimacy of any contract or activity entered into by the corporation, nor does it prevent the corporation from defending any action, suit, or process brought in this State’s courts.

Utah Deceptive Trade Act

While Utah has not yet embraced the Uniform Deceptive Trade Practices Act, it has established several legislations prohibiting businesses from adopting prohibited trade practices and willfully deceiving its consumers. The State-enforced Consumer Protection and Criminal sections protect Utah consumers from deceptive, misleading, and false advertising tactics and forms. Any individual who has been defrauded or is likely to be violated, and the State can bring a lawsuit against such violators to restrict such businesses.

How Fast Can You Obtain EIN for Foreign LLC in Utah

You might be wondering how fast you can get your foreign LLC EIN in Utah. If so, you are in the right place. In this article we will cover the necessary steps and information to get your foreign LLC EIN. Once you have registered your foreign LLC, you can begin the process of filing for your tax ID number. After that, you’ll need to file your annual Utah LLC renewals. These can be as easy as filling out an application and mailing it to the state.

While you may be able to start a foreign LLC in Utah without a Social Security number, you must obtain an EIN to file for tax returns. In addition, your EIN is needed to hire employees and file for excise taxes. In many states, you can obtain an EIN without a social security number. You’ll have to pay a fee, however, for this service, but in Utah, it’s usually free.

To obtain your EIN, you must have a physical address in the United States. This means a street address box or a mailing address. Be sure that the address is correct as a street address, and that special characters are omitted. When you submit your application, the IRS will check it against its records to ensure that the address you provide is accurate. If the address doesn’t match, they’ll send your documents to a different address.

FAQ

How to obtain EIN for foreign LLC in Utah?

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 Utah 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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