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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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I am a Dr. and I just started an LLC and elected to be taxed

Customer Question

I am a Dr. and I just started an LLC and elected to be taxed as an S-Corp, but I was a sole proprietor before the LLC. I have on employee, and he was my employee before I started the LLC. I submitted payroll taxes under the EIN assigned to me as a sole proprietor. I submitted the S-Corp election on 4/08, but did not hear back for a couple months. While I was waiting, I went ahead and treated the LLC as an S-Corp and on 5/20 I paid myself a salary and withheld taxes, then paid and submitted the taxes on 6/15 using the same EIN as my sole proprietorship, because I did not think I needed a new EIN. I then received notice that my LLC would be treated as an S-Corp starting on 4/08, but I was also assigned a new EIN. Does that mean the taxes paid under my old EIN should have been submitted under the new EIN? In addition, I filed the quarterly 941 report on 6/15 using my old EIN, do I need amend it with the new EIN? I am lost as to how this works.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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You've answered your own question here.

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You're intuition was good that you should have started treating yourself as an S-Corp as of your 4-8 effective date.

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As you've guessed, however, you do need to amend, so that the EIN attached o the S-Corp is what's being used for that time that you were an S-Corp.

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It's tedious (having to amend the 941 to use the new EIN) but this will make things "match-up," in the IRS system.

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Please let me know whhat questions you have from here

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Lane

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I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.