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"Fight" with CPA

Asked over 2 years ago - Dallas, TX

I keep having this argument with my CPA:
I am a sole proprietor with an EIN number. I formed an LLC this year (single owner) and she keeps telling me I need a new EIN for the LLC. I keep telling her I do not need one as I choose to keep being taxed as a sole proprietor rather than an "S" or "C" coorporation. Who wins the debate in this matter? Thank you for all your hard work!
Rey

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Attorney answers (1)

Henry Daniel Lively

Reputation Level 20

Answered over 2 years ago. Tax Lawyer in Costa Mesa, CA.

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She wins. The LLC is a separate legal entity and requires its own EIN number. Since it is a single owner LLC it is a disregarded entity for federal tax purposes, and the income and expenses should be reported on your schedule C under the business name, and using the business Tax ID number. If you want any protection from the LLC you need to do it this way. Otherwise, you are still a sole proprietor and the LLC is inactive.

Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

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