This is what I find closely related to our situation from your notes above:
A new LLC with one owner (single member LLC) is formed under state law, does not choose to be taxed as a corporation or S corporation, and has no employees or excise tax liability. NOTE: You may request an EIN for banking or state tax purposes, but an EIN is not required for federal tax purposes.
We will NOT be a corporation or S corporation. However, the one employee will transfer from old sole proprietorship to new LLC. Does that mean we will need a new EIN?
I will add a bonus amount to your fee here. Can I upload more notes for you? See below
NOTES FROM IRS PUBLICATION #3402
REGARDING DISREGARDED ENTITY: Sole Proprietorship Changing to Single-Member LLC
Taxpayer identification number. For all income tax purposes, a single-member LLC classified as a disregarded entity must use the owner's social security number (SSN) or EIN. This includes 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 LLC must provide the owner's SSN or EIN, not the LLC's EIN.
Note fromCustomer We have this EIN number already (several years now): We have been using this for everything: W-9s and also for Employment Tax Purposes.
<span style="text-decoration: underline;"Customersays: More notes/clarification from IRS Publication 3402:
However, most new single-member LLCs classified as a disregarded entity will need to obtain an EIN for the LLC. An LLC will need an EIN if it has any employees [We will have one employee for now on payroll.] or if it will be required to file any of the excise tax forms listed above (see Employment tax and certain excise taxes earlier). See Form SS-4, Application for Employer Identification Number, for information on applying for an EIN.
1. Will we have to issue separate W-2s to same employee on old Sole Proprietorship that transferred to new LLC?
THEN AFTER SEARCHING MORE ON THE IRS WEBSITE TO FILE A NEW EIN, I FOUND SOMETHING BELOW THAT CONFLICTS WITH THE INFO IN PUBLICATION 3402 ABOVE:
Limited Liability Companies
You will not be required to obtain a new EIN if the following statements are true:
- A corporation files papers with the state to convert to an LLC and will elect via Form 8832 to be taxed as a corporation.
- The number of members in the LLC changes from more than one member to a single member.
- The number of members in the LLC changes from a single member to more than one member.
- A sole proprietor files papers to become a state recognized entity, organizes as an LLC, and will file Form 8832 or Form 2553 to elect to be treated as a disregarded entity or taxed as a corporation or small business corporation.
Would the BOLD info apply to our situation in which case we would NOT need a new EIN? Rather we should fill out Form 8832 and send in?