Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I cannot afford the services of a lawyer or tax professional

Customer Question
to answer this question....
I cannot afford the services of a lawyer or tax professional to answer this question. I just got an EIN number for my business at the same time that I registered my business as a single member LLC (have been in business for three years, just changed my business entity from sole proprietor to LLC, which I know is a disregarded business entity and treated as a sole proprietor for tax purposes.) (I requested that the EIN number be effective Jan 1st, 2012.) My question is this: when I got the EIN number I stated that I would have no employees, that is before I realized that the part time person I hired in 2011 had to be treated as an employee, and not a sub contractor., so I need to pay in Social Security on him for 2011, a modest amount, less than $500 for the whole year. I have the federal 941 quarterly returns filled out for the quarters he worked in 2011,(knowing I will pay a penalty for not filing on time )but now I am apprehensive about using the EIN number I was assigned, because of the effective date that I put down as January 1, 2012 and the statement that I had no employees.
Submitted: 5 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 14 minutes by:
12/30/2011
Tax Professional: wm030303, Enrolled Agent replied 5 years ago
wm030303
wm030303, Enrolled Agent
Category: Tax
Satisfied Customers: 112
Experience: I am both a CPA and EA with over 30 years of experience in solving tax related issues.
Verified

wm030303 :

Hello and thanks for using JA.

wm030303 :

If it was an honest mistake then just go ahead and file the 941 with your EIN. You may be penalized a little unless you paid your employees wages in the 4th quarter of 2011. You could just pay all withholding taxes and fica with the year end 941.

Customer:

So do I file each quarterly 941 return or with just one end 941? Where do I find year end 941 return? Will I be okay filing with the EIN they gave me even though it was not supposed to be effective until Jan 2012

wm030303 :

If you already have them all prepared just go ahead and file them for each quarter and go ahead and use your ein that has already been assigned by the IRS.

wm030303 :

You could also put ein "applied for" on 2011 941's but why do that if you already have it?

Customer:

Even though the EIN isn't supposed to be in effect til next year? sorry just want to be sure about that. Also, I can change the quarterly returns and do the year end 941 if that is better. Actually we didn't have any wages paid in 4th quarter so that might bode better.? will still have the same employee for next year, part time, he only worked about 19 weeks in 2011.

wm030303 :

When you file your personal tax return it will be on a schedule C as a Sole Prop or Disregarded Entity LLC and the 941 form requires a EIN.

wm030303 :

You could show "applied for" EIN on 941 but it would be easier for IRS to Identify your business since it has already assigned an EIN in 2011.

Customer:

That brings me to my last and final question, the LLC was formed December 19 of this year. when we file 2011 tax return do we file as LLC, with our legal LLC name our EIN number even though it wasn't in place til end of year...all I need to know...HA

wm030303 :

I can assure you the IRS will take your payment

wm030303 :

As I said before your LLC will be filed as Schedule C with your Name and SS# XXXXX indicating your LLC Name and EIN on your tax return should not have any effect on your filing.

wm030303 :

Only if you chose to be LLC partnership or Corp would things matter.

Customer:

Yes, I understand, they pretty much treat single member LLC as sole proprietor

Customer:

One more thing,, what form do I look for on IRS site as final 941 for the year

wm030303 :

In the future if you do business with other businesses that issue you a 1099, give them your business name and EIN when you fill out the W9 form too.

Customer:

good idea

wm030303 :

It's same 941 form, you just check Quarter 4. Oct Nov and DEc

wm030303 :

Remember IRS gets millions of these forms and they don't scrutinize all of them.

wm030303 :

They just process and put your money in the Treasury.

Customer:

I still don't understand how I can report all 4 quarters on just one form., I am about done.HA

Customer:

Do I just check all quarters?

wm030303 :

Just show how much was paid in each quarter seperately or show it as all being paid in Oct Nov Dec

Customer:

So I can file one 941, check that is for all four quarters and pay all at once? I'm done, thank you!

wm030303 :

no check on the 941 which quarter is being filed. go ahead and send the IRS four (4) 941 forms all at once and allocate how much was paid to your employee for each quarter seperately.

Customer:

Can I send one single check for all four quarters

wm030303 :

no, you would need to send a sepearte voucher and check for each quarter.

Customer:

that's what I thought.

Customer:

I will accept, thank you and have a good New Year's Eve !

wm030303
wm030303, Enrolled Agent
Category: Tax
Satisfied Customers: 112
Experience: I am both a CPA and EA with over 30 years of experience in solving tax related issues.
Verified
wm030303 and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask wm030303 Your Own Question
wm030303
wm030303
wm030303, Enrolled Agent
Category: Tax
Satisfied Customers: 112
112 Satisfied Customers
Experience: I am both a CPA and EA with over 30 years of experience in solving tax related issues.

wm030303 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I am preparing a form 8802 for an LLC that will be filing as
Good morning. I am preparing a form 8802 for an LLC that will be filing as a Partnership on Form 1065. For 2016 this entity was a Single Member LLC and two Partners were admitted October 1, 2017. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
In a LLC partnership. Two partners equal partners. No
In a LLC partnership. Two partners equal partners. No employees. Each putting max into their SEP accounts. Does the contribution have come from the partnership cash account or their personal accounts.… read more
abci168
abci168
Principal
27 satisfied customers
I wanted to form a sole proprietor business using my name,
i wanted to form a sole proprietor business using my name, and wound up using my name as a company name, is there a way to reverse this and do it the right way … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I am a sole proprietor with no employees. I am not an LL C
I am a sole proprietor with no employees. I am not an LL C or corporation. Can I issue a 1099 to a sub contractor without affecting my status a a sole proprietor? … read more
abci168
abci168
Principal
27 satisfied customers
2 Member LLC now 1 Member LLC. What forms to file to IRS? I
2 Member LLC now 1 Member LLC. What forms to file to IRS?I have an LLC that was Me and Member B. Member B has now left the LLC and sold his ownership to me for no consideration. I am now the sole owne… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
If I am a sole proprietor that starts a business using
If I am a sole proprietor that starts a business using personal equipment assets in my business. Are there any ways to establish those assets as depreciable assets and take the maximum allowable write… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
734 satisfied customers
I have a client that was a Sole Proprietor. He formed an LLC
I have a client that was a Sole Proprietor. He formed an LLC and elected to be taxed as an S-corp on 8/1/17. He purchased a $39k vehicle in his sole proprietorship in 2015 and deducted Sec 179 and A/D… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a LLc partnership and having difficulties with my
I have a LLc partnership and having difficulties with my partner. He has been unresponsive. I do not have a written agreement with him however I do have the past 3 years K1 statements showing I am a 30% partner. I have two basic questions. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If an owner took a draw from the business (sole proprietor
If an owner took a draw from the business (sole proprietor llc) and the business is showing a loss excluding that draw then I assume no income or self employment taxes will be paid since there is a lo… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
A sole proprietor with a tentative loss may deduct which of
a sole proprietor with a tentative loss may deduct which of the following for qualified business-use-of-home expenses:mortgage interest depreciation rent utilities… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
If you own a trucking business as a Sole Proprietor and am
if you own a trucking business as a Sole Proprietor and am the owner that 76 years old but I have a daughter and I would like to convert over to a LLC so that if something happens to me my daughter co… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,310 satisfied customers
My LLC partnership K-1 form shows nothing in Box 19 and
My LLC partnership K-1 form shows nothing in Box 19 and shows $$$ in box 14 A and C. I have no problem with that, but when trying to refinance my home the bank refused to consider the business income … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
A taxpayer, Form 1040 Schedule C, is on the cash basis. The
A taxpayer, Form 1040 Schedule C, is on the cash basis. The average revenue for the last 5 years is $5,100,000. There is no inventory. The NAICS is 423600Can he remain on the cash basis?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am a sole proprietor LLC, and work in the Corporate AV
quot;I am a sole proprietor LLC, and work in the Corporate AV Meeting industry , with 2 kinds of AV income. W-2 from one company part time, and 1099 from other companies. Will my employer contribution… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I have LLC partnership with 3 partners and have been filing
I have LLC partnership with 3 partners and have been filing 1065 for 2015 & 2016 Client intends to convert the LLC in to C Corp with effect from 01 01 2017 Question: Can it be converted from 01 01 201… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
In 2014 we filed all Corporate taxes (quarterly, federal
In 2014 we filed all Corporate taxes (quarterly, federal etc) but just now received a letter from New Jersey State IRS (Dept of Treasury) that they have no record of us filing New Jersey Corporate tax… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If a sole proprietor loans money to his schedule C does the
If a sole proprietor loans money to his schedule C does the loan increase his basis in the business and when the business is closed, can the unrepaid loans be taken as a loss ?… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
A business as a sole proprietor thinking of changing to LLC.
A business as a sole proprietor thinking of changing to LLC. What would be the tax difference? Does the LLC pay corporate taxes? … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,310 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x