Comments on: Updating your EIN to reflect a Single Member LLC http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc The DIY source for aspiring entrepreneurs. Sun, 22 Jan 2012 03:18:43 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ed http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc/comment-page-2#comment-16120 Ed Thu, 12 Jan 2012 03:32:58 +0000 http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc#comment-16120 I have a cafe in NJ for 8 years and is a registered as LLC with my partner. He has decided that he is leaving and no longer wants to do this any more. I have decided to buy him out. I wanted to know what is the best solution for my business now. If I want to become a single member LLC, do I need to close my current LLC to get a new EIN? I have a cafe in NJ for 8 years and is a registered as LLC with my partner. He has decided that he is leaving and no longer wants to do this any more. I have decided to buy him out. I wanted to know what is the best solution for my business now. If I want to become a single member LLC, do I need to close my current LLC to get a new EIN?

]]> By: Michael http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc/comment-page-2#comment-16090 Michael Fri, 06 Jan 2012 00:19:20 +0000 http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc#comment-16090 Thanks very much for this excellent help. Good karma to you. Thanks very much for this excellent help. Good karma to you.

]]> By: Chris http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc/comment-page-2#comment-16057 Chris Fri, 30 Dec 2011 18:41:49 +0000 http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc#comment-16057 For all the folks asking questions here, it's really easy and fast to get a response from the IRS phone number. Don't be afraid to go to the source. In my case, I requested an EIN exclusively for a rental property and created as a partnership (by including my wife which I do on everything.) Well, in this case, that was a bad decision since it requires filing a separate Form 1065 Partnership Income which I do not want. Also, call your Secretary of State office to confirm if you need to file any amendments. In my case, Colorado does not record other owners so I didn't have to make any changes/pay additional fees. They asked me to send a letter explaining that I was now the sole owner and to convert to a single-entity LLC vs. a partnership so I can file a schedule C and not Form 1065. I was told to send this letter to: IRS Ogden, UT 84201 Attn: BMF Entity <----- told this is short for "business master file" I was told this will take 8-12 weeks to process and I can request a written confirmation to be sent (which I did). Thanks Tomas--at least you got me in the right direction. Hope this helps others. For all the folks asking questions here, it’s really easy and fast to get a response from the IRS phone number. Don’t be afraid to go to the source.

In my case, I requested an EIN exclusively for a rental property and created as a partnership (by including my wife which I do on everything.) Well, in this case, that was a bad decision since it requires filing a separate Form 1065 Partnership Income which I do not want. Also, call your Secretary of State office to confirm if you need to file any amendments. In my case, Colorado does not record other owners so I didn’t have to make any changes/pay additional fees.

They asked me to send a letter explaining that I was now the sole owner and to convert to a single-entity LLC vs. a partnership so I can file a schedule C and not Form 1065.

I was told to send this letter to:

IRS
Ogden, UT 84201
Attn: BMF Entity <—– told this is short for "business master file"

I was told this will take 8-12 weeks to process and I can request a written confirmation to be sent (which I did).

Thanks Tomas–at least you got me in the right direction. Hope this helps others.

]]> By: Tom http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc/comment-page-2#comment-16000 Tom Tue, 20 Dec 2011 18:26:08 +0000 http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc#comment-16000 http://www.irs.gov/businesses/small/article/0,,id=98011,00.html http://www.irs.gov/businesses/small/article/0,,id=98011,00.html

]]> By: Mike http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc/comment-page-2#comment-15980 Mike Mon, 19 Dec 2011 06:45:22 +0000 http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc#comment-15980 I gave my Father money to start his business . As a gesture he put My wife on and I on the LLC. We have never received any payment from the company. I have recentaly found that he has not paid sales tax for the last three months Our accountant feels like we are now liable for taxes and we should have our names removed for the LLC. What are your thoughts? I gave my Father money to start his business . As a gesture he put My wife on and I on the LLC. We have never received any payment from the company. I have recentaly found that he has not paid sales tax for the last three months Our accountant feels like we are now liable for taxes and we should have our names removed for the LLC. What are your thoughts?

]]> By: Mei Tan http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc/comment-page-2#comment-15867 Mei Tan Sat, 03 Dec 2011 19:10:39 +0000 http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc#comment-15867 Thank you so much Tomas! This is so helpful! I'm in the State of California and was advised by so many different CPAs & Attorneys so many different things. Just out of curiosity though, if you convert from and single member LLC to an S-Corp, is it considered an entirely new entity? Do previous debts of liabilities from the LLC transfer over to the newly converted S-Corp? Thanks!! Thank you so much Tomas! This is so helpful! I’m in the State of California and was advised by so many different CPAs & Attorneys so many different things. Just out of curiosity though, if you convert from and single member LLC to an S-Corp, is it considered an entirely new entity? Do previous debts of liabilities from the LLC transfer over to the newly converted S-Corp? Thanks!!

]]> By: lyili http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc/comment-page-2#comment-15559 lyili Wed, 26 Oct 2011 23:12:07 +0000 http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc#comment-15559 i mistakenly registered as a partnership with the irs but an llc with my state. how do i fix it? please help! i mistakenly registered as a partnership with the irs but an llc with my state. how do i fix it?
please help!

]]> By: Vipul http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc/comment-page-2#comment-14959 Vipul Tue, 26 Jul 2011 21:26:44 +0000 http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc#comment-14959 YOU ARE AWESOME...showed me the path..Thanks a lot! Just called IRS at the number you provided and they were very very helpful in providing me information i was looking at! YOU ARE AWESOME…showed me the path..Thanks a lot!
Just called IRS at the number you provided and they were very very helpful in providing me information i was looking at!

]]> By: KMartin http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc/comment-page-2#comment-14872 KMartin Fri, 08 Jul 2011 14:41:28 +0000 http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc#comment-14872 HI! Thanks for your helpful info! My company is a disreguarded entity LLC, with only one member-me. Constuction field. When I filed ss4 I recieved TWO EINs, one for me as a sole proprietor and one for the LLC. The letter from the IRS stated that it is mandatory for these two numbers to be issued together. Which of these two numbers do I use to issue 1099s to subcontractors, to pay them and which of these numbers do I use to fill out a W9 for a client, to get paid? According to the IRS website (dont quite understand the logic behind it...) it says use the sole prop. EIN for filling out a W9 to get paid from client. but doesnt say which EIN to use to issue a 1099 to a sub that worked on that job that the W9 was filled out for. Doesnt it seem like the two EINs used would be the same # (which would be the sole prop. EIN)? IF that is the case, why would I even need an EIN for the LLC? Maybe just for a bank account or something? Thank you for all your great info!! HI! Thanks for your helpful info! My company is a disreguarded entity LLC, with only one member-me. Constuction field. When I filed ss4 I recieved TWO EINs, one for me as a sole proprietor and one for the LLC. The letter from the IRS stated that it is mandatory for these two numbers to be issued together. Which of these two numbers do I use to issue 1099s to subcontractors, to pay them and which of these numbers do I use to fill out a W9 for a client, to get paid? According to the IRS website (dont quite understand the logic behind it…) it says use the sole prop. EIN for filling out a W9 to get paid from client. but doesnt say which EIN to use to issue a 1099 to a sub that worked on that job that the W9 was filled out for. Doesnt it seem like the two EINs used would be the same # (which would be the sole prop. EIN)? IF that is the case, why would I even need an EIN for the LLC? Maybe just for a bank account or something?
Thank you for all your great info!!

]]> By: Ryan http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc/comment-page-2#comment-14604 Ryan Tue, 24 May 2011 03:44:43 +0000 http://theclosetentrepreneur.com/updating-your-ein-to-reflect-a-single-member-llc#comment-14604 Thank you so much for this site it is extrmely helpful..yes why indeed is this information not on the IRS website, it has to be a very common scenario in the LLC world. Formed a 2-person LLC, I was the one to register for the EIN on the IRS website and it requires you furnish a SSN# in order to get an EIN, so I provided mine. I just want to know that in case I have the leave the LLC I want a neat and clean mechanism to dissassociate my name/SSN from the EIN and I looks like you have to write a letter. Thanks! Thank you so much for this site it is extrmely helpful..yes why indeed is this information not on the IRS website, it has to be a very common scenario in the LLC world. Formed a 2-person LLC, I was the one to register for the EIN on the IRS website and it requires you furnish a SSN# in order to get an EIN, so I provided mine. I just want to know that in case I have the leave the LLC I want a neat and clean mechanism to dissassociate my name/SSN from the EIN and I looks like you have to write a letter. Thanks!

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