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


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To obtain EIN for Virginia 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 Virginia 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 Virginia 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 Virginia– 
    • 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 Virginia

To conduct business in Virginia, the foreign LLC needs to register itself with the State of Virginia, according to Virginia’s Limited Liability Company Act.

Transacting Business In The State Of Virginia

The business LLCs also need to decide upon the subject of a collection of taxation. According to state rules, foreign LLCs must collect state sales taxes in their home state. For a foreign LLC to become eligible to collect State Sales tax, the company must have a physical presence in—or a connection with—the state to be liable to collect state sales tax on sales to its residents. If a foreign LLC opens a store, an office, or a warehouse in Virginia, or hires a sales representative there, it is regarded to have a physical presence in Virginia.

Registering The Business

The foreign business LLC must file an Application for a Certificate of Authority with the Virginia State Corporation Commission in order to register a foreign corporation in Virginia.

The Virginia State Corporation Commission requires a certified copy of the Articles from the home state in order to approve a foreign qualifying application. The foreign entity must also designate a registered agent in Virginia on file at all times to act as their Official Communicator with the Secretary of State Office.

Effect Of Non-Registration

In case of a foreign business LLC starts its business operations in Virginia without registration, it may have to face the following consequences as per Article 10 of the Virginia Foreign Limited Liability Companies Act:

  • Such a foreign LLC shall not be permitted to file any action, suit, or maintain a proceeding in any Court of Law in the State and shall lose its right to legal representation to contest and safeguard its business interests.
  • Each member of such a business LLC who conducts business knowing that the LLC is violating the registration provisions in the State shall be liable for a penalty from $500 to $5000 after notice by the State Authorities. 
  • However, the inability of a foreign LLC to register in Virginia has no bearing on the legality of any contract entered into by the foreign LLC, nor does it preclude the foreign firm from defending any action, suit, or proceeding in any Virginia court.

Virginia Deceptive Trade Act

The State of Virginia does not follow the Uniform Deceptive Trade Practices Act. The State-enforced law, i.e., the Virginia Consumer Protection Act of 1977 prohibits more than 50 deceptive trade practices in different areas of business, such as:

  • Misrepresenting the quantity, qualities, components, uses, or advantages of goods or services.
  • Used, blemished, or reconditioned items are advertised or offered for sale as new or pristine.
  • Using any type of deceit, fraud, false pretence, false promise, or misrepresentation in a transaction
  • Selling children’s items that have been recalled by the Consumer Product Safety Commission in the United States.
  • Failure to disclose all terms and expenses associated with return policies and layaway agreements.

In case of violation of the business practices provisions, the Attorney General, individuals, commonwealth attorneys, and the state may file suit for violations against the violator.

How Fast Can You Obtain EIN for Foreign LLC in Virginia

If you’ve decided to form a foreign LLC in Virginia, the first step will be to obtain an EIN, or business identification number, from the state. An EIN is like a social security number for your business. Applying for one is free, and you can do so in person, by fax, or through the IRS website. You should also investigate whether there are any licensing requirements for your business’ primary location. If you intend to engage in regulated industries, you may also have to apply for a business license from a state agency.

Getting an EIN for your LLC is important for several reasons. Obtaining it is necessary if you plan to hire employees or pay employment taxes on your company’s profits. You’ll also need it to establish bank accounts and pay employment taxes. Additionally, you will need to register with state labor departments. This information is essential for establishing a legal business. Fortunately, the process for starting an LLC in Virginia is simple and can be completed in a few hours.

Before you can file for an EIN, you need to form your company. You can choose a member-managed or manager-managed company. If you’re a foreign LLC, you should register as a Foreign LLC. An EIN is important when you start doing business in Virginia, and it’s vital for the growth of your business. Once you’ve obtained your EIN, you’ll need to register your business with the state taxing authority.

FAQ

How to obtain EIN for foreign LLC in Virginia?

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 Virginia 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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