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

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. Best answer

    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. Answering your questions does not create an attorney-client relationship between us. You should speak with an attorney to whom you have provided all the facts in your case, before you take steps that may impact your legal rights. I am not obligated to answer subsequent emails or phone calls unless you have hired me. I wish you the best of luck with your situation.


  2. 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 negotiations, and estate planning in Whatcom, Skagit, Snohomish, King and Pierce counties. The response does not constitute specific legal advice, which would require a full inquiry by the attorney into the complete background of the facts and circumstances surrounding this matter; rather, it is intended to be general legal information based on the limited information provided by the inquirer; it This response also does not constitute the establishment of an attorney-client relationship, which can only be established after a conflict of interest evaluation is completed, your case is accepted, and a fee agreement is signed. Johnson Legal Group, PLLC


  3. 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 you in any way I can, within those limits. I wish to make clear I am only communicating with you for the sole purpose of exchanging such general information, and nothing more. It is not legal advice, which I can not provide because among other reasons I know few of the necessary details of your situation. I do not purport to represent you in any way, shape or form. Of course, if you would like to seek out my services, and if you are a NY resident, I will probably not put up very much resistance but representation would still necessitate a signed retainer agreement between yourself and I. Thank you.


  4. 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 establish an attorney-client relationship.


  5. 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.


  6. 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

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