Asked 4 months ago - Indianapolis, IN
FlagI registered my business as an LLC with the IRS and my state's attorney general office. When I printed out the paperwork I get sent, the federal government listed my business name with "LLP" at the end of it, not LLC. The state lists LLC with my business. Do I need to officially change this and if so, how would I do that? Or is this common, and it doesn't make a big difference? I am essentially a sole proprietorship but wanted to register as an LLC to avoid personal liability, as I am a life coach in private practice.
i agree with my colleagues.
I would only add that you want to make sure the IRS has your tax ID number registered under the appropriate tax status. If you want to be taxed as a sole proprietorship, then your tax status for the LLC should be "disregarded entity." If you are registered as a partnership, then the IRS will be looking for a partnership return for your EIN while you will simply be filing your personal Form 1040.
LLCs are unique in that they get to choose how to be taxed. Depending on how many members there are, an LLC can be a "disregarded entity," a partnership or a corporation for tax purposes. You just want to make sure that you and the IRS have the same idea about your LLC.
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