Do I need a new EIN for an LLC Foreign Qualification?

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A common misconception people think is that they need a new EIN – Employer Identification Number – for an LLC foreign qualification (registering your LLC to do business in another state).

Answer: No, this is not true. You don’t need a new EIN if you “foreign qualify” your LLC .

Your LLC EIN Number is used for federal tax purposes. The IRS doesn’t care how many states your LLC is registered to do business in. It’s all really one “entity” in the eyes of the IRS.

When you register your LLC as a foreign LLC in another state, you’re not creating 2 LLCs. A more accurate verb is managing 2 LLC registrations. You really only have 1 LLC (a domestic LLC) that is registered to do business in 1 other state.

Even if your LLC is qualified as a foreign LLC in 17 states, it’s still just 1 LLC that is registered to do business in 17 states (in addition to its home state).

So regardless of the number of foreign LLC qualifications your LLC has (also referred to as “LLC authority to transact business”), you’ll just use 1 EIN Number for all federal reporting with the IRS.

Again, a foreign LLC doesn’t need a new EIN to do business in another state. It already has an EIN. The “Foreign” designation just means that your LLC can do business in another state. As per the IRS, it’s not a “new” LLC that needs a new EIN.

Matt Horwitz


Matt Horwitz
Founder & Educator, LLC University®
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.

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