Do I need a Tax ID # and business name to form an LLC?

Asked about 2 years ago - Longmont, CO

I am currently paid under contract labor and my employer is requesting that I get an LLC so he can pay me as a business thru his LLC.

Attorney answers (6)

  1. David M. Rich

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    Contributor Level 15

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    Answered . He should be able to just pay you under a 1099 as an independent contractor. I don't know why you would have to have an LLC. Sometime, a business owner will require you to have your own insurance as a contractor and/or it makes sense to form an LLC to give you limited liability protection, but that would depend on the type of business you are in. Hope this helps.

    You can reach Dave Rich at (303) 886-2516 or dave@flatironlegal.com. Dave Rich is an attorney licensed in Colorado.... more
  2. Robert John Murillo

    Contributor Level 20

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    Answered . What he is asking for is very common. That is especially the case if he is paying you as a contractor (I will not discuss whether you legally are a contractor, which is a totally separate set of issues). One reason that this is requested is because having an entity is part of the evidence to establish that this is an independent contractor relationship. Fortunately, this is Colorado and forming an LLC is simple and cheap. It can be done rather easily online. Moreover, forming an LLC is a good idea depending on the type of work you are doing for limited liability purposes.

    So unless you feel like challenging this frankly basic request, you should select a name and form the LLC. If you want to know if this relationship is really a contractor as opposed to employment, you will have to speak with an attorney on the issues. This is not a slight matter. Good luck.

    This answer is for informational purposes only and is not legal advice regarding your question and does not... more
  3. Matthew Erik Johnson

    Contributor Level 17

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    Answered . You do need a business name, and part of the name must include LLC, L.L.C or the like.

    You don't need a tax id to form the LLC, but you will need a Tax ID afterwards to open bank accounts and file taxes.

    Matthew Johnson phone# 206.747.0313 is licensed in the State of Washington and performs bankruptcy, short sale... more
  4. William Bronchick

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    Contributor Level 7

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    Answered . He's trying to avoid having to give you a 1099, but what most people don't realize is that having an LLC does NOT absolve him of that liability. It's only if you are a CORPORATION that he does not have to 1099 you.

  5. Robert A. Stumpf

    Contributor Level 19

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    Answered . Tax ID numbers are just about always needed, if only for IRS tax compliance reasons. I think your employer's request is more than valid. It's a simple process to get a number, it takes a few minutes usually on the IRS's web site.

    This is AVVO, a place for users to obtain general legal information to general legal questions. I am glad to help... more
  6. Ronald Lee Bell

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    Contributor Level 14

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    Answered . Yes you do this is easily obtainable through IRS. It is often referred to as a 36 number employer identification number. An accountant can obtain one for you

    Contact local consel

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