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


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To obtain EIN for West 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 West 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 West 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 West 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 West Virginia

When a foreign LLC operates in West Virginia, it is termed as West Virginia Foreign LLC. According to West Virginia’s Limited Liability Company Act, such foreign business LLCs must foremostly register themselves with the State of West Virginia if they are transacting business in the State.

Transacting Business In West Virginia

When the LLC is duly incorporated with the State office, its position with regard to taxation must also be determined. According to state rules, foreign LLCs must collect state sales taxes in their home state. To be liable to collect the State sales tax, the foreign LLC should have a physical presence in—or a connection with—the State. For instance, if a foreign LLC opens a store, an office hires a sales representative there, or a warehouse in West Virginia, it is regarded as having a physical presence there.

Registering The Business

For registration, the foreign LLC must file an Application for Certificate of Authority with the West Virginia Secretary of State, Corporations Division, to register a foreign LLC in the State of West Virginia.

The West Virginia Secretary of State Office mandates furnishing of a certificate of Existence or good standing issued by the home state to approve a foreign qualification application. The certificate has to be from the current tax year. Another important aspect of the registration application is that the foreign entity must designate and keep a registered agent in West Virginia to act as their official point of communication with the State authorities.

Effect Of Non-Registration

In case a West Virginia Foreign LLC chooses not to register itself with the Secretary of State office, then the following penalties shall be levied on the LLC in accordance with the §31D-15-1502 of the West Virginia Business Corporations Act.

  • Such a foreign LLC shall be unable to commence an action or suit or maintain a proceeding in the State’s court. The LLC shall lose its right to legal representation in the Court of Law. 
  • The circuit court may further stay any proceedings in connection with such business LLC.
  • The foreign LLC will have to pay an amount equal to all the fees and taxes that is imposed on the registered entities, plus all the penalties imposed for failure to pay any taxes and fees.
  • The failure of a foreign LLC to register in this State has no influence on the legitimacy of any contract or corporate acts of the LLC, nor does it prevent the corporation from defending any action, suit, or process brought in this State’s courts.

West Virginia Trade Practice Act

The Uniform Deceptive Trade Practices Act has not been implemented in West Virginia. The West Virginia Consumer Credit and Protection Act outlines the State’s deceptive commercial practices statutes. Everything from misrepresenting warranty coverage and sending spam emails to altering the odometer on a second-hand automobile is prohibited under these deceptive trade practices regulations. A consumer who has suffered a determinable loss may file a claim in West Virginia State Court.

How Fast Can You Obtain EIN for Foreign LLC in West Virginia

You’re in the process of setting up a foreign LLC in West Virginia. But before you do anything, you need to obtain an EIN. An EIN is essentially the social security number for your business. Without an EIN, you can’t do any of these things, from opening a business bank account to reporting taxes to the IRS and state. You’ll need to apply for an EIN online, so that the IRS can recognize your business and give you an ID.

The first step is to file a Certificate of Authority with the West Virginia Secretary of State. You’ll receive a copy of this document with a date stamp. You can also obtain a certified copy of these records for a fee. The process may take between five to 10 days, depending on the amount of documentation submitted. In addition, you’ll need to choose a registered agent who lives in the state.

Your business can’t hire employees until you have an EIN. Without an EIN, you won’t be able to track employee payroll taxes and protect your personal assets. Furthermore, an EIN helps you avoid lawsuits against your members. An EIN is a crucial part of the corporate veil, which is the legal distinction between the business and its owners. It’s also the easiest way to make sure that you’re not committing tax evasion.

FAQ

How to obtain EIN for foreign LLC in West 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 West 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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