EIN question

[yaar_dost02]

Originally Posted by glacier922

Aren't you like a disowned entity or something I'd you are a single member llc? That means you have to pay taxes based on the owner of the llc

yes you are correct you are a “disregarded entity”. An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes unless you file Form 8832 and elects your LLC to be treated as a corporation.

[glacier922]

Yaar_dost02

So does this mean that you do fill out that 8832 form and elect to be taxed as a corporation? So you basically have to take the proactive approach.

Reason why I asked is because I already got a sole prop, and you only get 1 ein in your lifetime as a sole prop. So if you are a disregarded entity and taxed the llc owner the same, then I think you would run into that problem of getting an ein because you only get that one ein per lifetime as a sole prop.

So yea, looks like you have to fill out that 8832 form.

[yaar_dost02]

Originally Posted by glacier922

Yaar_dost02

So does this mean that you do fill out that 8832 form and elect to be taxed as a corporation? So you basically have to take the proactive approach.

Reason why I asked is because I already got a sole prop, and you only get 1 ein in your lifetime as a sole prop. So if you are a disregarded entity and taxed the llc owner the same, then I think you would run into that problem of getting an ein because you only get that one ein per lifetime as a sole prop.

So yea, looks like you have to fill out that 8832 form.

For IRS income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or EIN for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.

nevertheless LLC needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN.

[glacier922]

@yaar_dost02

Ok, so you can get an ein by selecting the reason as you need to open bank account. But it will be taxed as individual's ssn. Ok, I get it.

[yaar_dost02]

Originally Posted by glacier922

@yaar_dost02

Ok, so you can get an ein by selecting the reason as you need to open bank account. But it will be taxed as individual's ssn. Ok, I get it.

Yes but as GreenBean said i am not tax professional to give advice so seek professional CPA help. I can just share my experience. Hope i have not offended anyone.

Thanks

[danshan]

I cant even make enough income on a stealth to be taxed