Tax
Have a tax question? Ask a tax Expert
Connect one-on-one with {0} who will answer your question
Answered in 10 minutes by:
9/9/2017
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 28,855
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
VerifiedHi - No. This now needs simply to be reported under the single member's Social Security number. (SSN)
...
That single member LLC's report with an EIN is one of the bigger misconceptions out there. The two reasons that a single member LLC needs an EIN are (1) to open a business account - Most banks' policy is that they will not open a business account with a social security number - and (2) to pay excise taxes such a payroll for employees.
...
Because the single member LLC is a disregarded entity, IRS guidance is to use the Social Security number when providing w-9's to payors, and then use both Social Security number AND the EIN on the schedule C so that the SSN and the EIN can be linked for excise tax purposes.
...
HERE, given that this is just passive activity, there may be NO need for an EIN at all.
...
(HOWEVER, the best practice would still be to have a business account tied to the LLC, to help preserve the separate entity status and the liability protection that goes with it - so as not to commingle personal and business assets, so THAT would be one reason to get the new EIN.
How JustAnswer works
Describe your issueThe assistant will guide you
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
100% satisfaction guaranteeGet all the answers you need
Related Tax Questions
I am filing taxes and do not have a final schedule k-1 for
Hi. I am filing taxes and do not have a final schedule k-1 for my LLC ( although my partner did leave the business last year) I am unsure of how to rectify that situation … read more
Lev
46,243 satisfied customers
Rental Partnership Taxes - 1. LLC Partnership is owned 50/50
Rental Partnership Taxes -1. LLC Partnership is owned 50/50 by husband and wife. 2. LLC owns 3 rental housesQ1 - can Partnership be closed and the information go directly on Schedule E? Q2 - would one… read more
emc011075
Tax advisor and Enrolled Agent
Bachelor's Degree
8,236 satisfied customers
Partnership to Single Member LLC: For assets, continue to
Partnership to Single Member LLC: For assets, continue to depreciate as if nothing changed? (From two members to one - 1065 to Sch C)… read more
Lev
46,243 satisfied customers
If an LLC partnership has only 1 member for the entire year,
If an LLC partnership has only 1 member for the entire year, can it still file a 1065 (with the assumption that other members may join in subsequent years)?… read more
Lev
46,243 satisfied customers
Last tax year (2016) Me and my friend setup a Partnership
Last tax year (2016) Me and my friend setup a Partnership 1065. At the end of 2016, I bought my partner out and now I am the only member in the business starting from Jan 2017. So, do I still file a 1… read more
Lev
46,243 satisfied customers
I left an LLC 2 years ago. In fact, 6 owners or members all
I left an LLC 2 years ago. In fact, 6 owners or members all left with me in 2015. One owner was left, who continued the business for a few months then he put biz into liquidation. Money owed to the bu… read more
Lev
46,243 satisfied customers
I formed an EIN back in 2012. However, 2016 was the first
Hi! I formed an EIN back in 2012. However, 2016 was the first year I filed my taxes under the number. I just got off the phone with the IRS. They told me I need to file returns for 2021,2013,2014 and … read more
Mark Taylor
Certified Public Accountant
Masters
3,454 satisfied customers
Tax Experts Client just created single member LLC and want
Tax Experts Client just created single member LLC and want to be taxed as s-corporation. Do we need to file 8823 in addition to 2553 Form or 2553 is enough? Can we do it with 2016 tax return using "ch… read more
Mark Taylor
Certified Public Accountant
Masters
3,454 satisfied customers
I filed back in March 2016 for an EIN number and to be
I filed back in March 2016 for an EIN number and to be classified as an LLC. well based on the information submitted to the IRS they are stating in the letter i need to file form 1065. This is just a … read more
Mark Taylor
Certified Public Accountant
Masters
3,454 satisfied customers
An LLC with 2 members (partnership) acquired a real estate
An LLC with 2 members (partnership) acquired a real estate note in 2015 (less than $100,000). The same note is being sold in 2016 at a potential profit. Is the LLC required to file a 1065 for the 2015… read more
Dr. Fiona Chen
President
Ph.D.
11,690 satisfied customers
Tax Experts Change from Single member LLC (disregarded
Tax Experts Change from Single member LLC (disregarded entity) to Multi-Member LLC (partnership). My client did register single-member LLC instead of partnership. It was mistake because partnership ha… read more
Lev
46,243 satisfied customers
I am preparing a tax return sole-proprietor who filed
Hi there. I am preparing a tax return for a sole-proprietor who filed paperwork with the state to become an LLC in 2015. There is only one partner and the gross income was under $15,000 (not sure if t… read more
emc011075
Tax advisor and Enrolled Agent
Bachelor's Degree
8,236 satisfied customers
I have a two member LLC that was taxed as a partnership in
I have a two member LLC that was taxed as a partnership in 2014. As of January 1 2015, one partner bought out the other. I need this now one member LLC to be taxed as a S corporation. Aside from Form … read more
Lev
46,243 satisfied customers
We obtained FED EIN in 2015 with multimember LLC and
We obtained FED EIN in 2015 with multimember LLC and registered as multimember LLC with AZ State as well. After this in DEC 2015, we amended our AZ articles to just a single member LLC. Our question i… read more
emc011075
Tax advisor and Enrolled Agent
Bachelor's Degree
8,236 satisfied customers
Susie, and I'm looking on how to report payments made to
Susie, and I'm looking for information on how to report payments made to former partners for their share of the business … read more
Lev
46,243 satisfied customers
If "LLC Partnership A" owns "LLC Business " 100% as the
If "LLC Partnership A" owns "LLC Business B" 100% as the only "owner/partner" then what tax forms must LLC B file? I know LLC Partnership A files Form 1065 and K-1s.… read more
Lev
46,243 satisfied customers
My sister and I have a Nevada based Multi-Member LLC. We are
My sister and I have a Nevada based Multi-Member LLC. We are both Egyptian. We provide construction consulting services to US clients and have US Business bank account in which we receive payments for… read more
Lev
46,243 satisfied customers
How do I convert the multi member LLC treated as partnership
How do I convert the multi member LLC treated as partnership into a single member LLC disregarded entity? which forms must be submitted? Do you update the EIN too?… read more
taxmanrog
Master's Degree
2,203 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.
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.
...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...
Matteson, 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.
Chesnee, SC
Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.
Minneapolis, 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.
Hesperia, California
Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.
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!!!!
Los 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.
Hesperia, CA
< Previous | Next >
Meet the Experts:
Wallstreet Esq.
Tax Attorney
586 satisfied customers
10 years experience
Mark D
Enrolled Agent
1,338 satisfied customers
MBA, EA, Specializing in Business and Individual Tax Returns and Issues
Richard
Tax Attorney
6,083 satisfied customers
29 years of experience as a tax, real estate, and business attorney.
PhillipsEsq.
Attorney-at-Law
878 satisfied customers
B.A., M.B.A, J.D.
Loren
Attorney
834 satisfied customers
Over 25 years practicing law
Robin D.
Senior Tax Advisor 4
24,939 satisfied customers
15years with H & R Block. Divisional leader, Instructor
Megan C
Certified Public Accountant (CPA)
8,667 satisfied customers
Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
< Previous | Next >
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.
