Indy - Do I need an EIN?

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May 21, 2008 1:38 pm

Do I need an EIN when I go Indy?  I'm forming a member managed LLC (with me being the only member), but wasn't sure about the EIN.

 
Also, do I need to set-up a separate bank account for the firm?
 
Thanks,
 
Boone
May 21, 2008 1:51 pm

Ask your CPA what they would recommend.  Generally it is advisable to use a separate EIN.  Your Indy B/D will still report 1099 to your own SS# due to some rules/regs they quoted to me a long time ago.  You can elect to have your CPA report 100% of the 1099 back to your single member LLC and elect to be taxed as S-Corp.  Probably no advantage your first year unless your production is really high.  For other purposes, if you hire staff and open separate bank accounts (highly advisable from legal protection standpoint) you will want a separate EIN.  If you hire consultants and pay them fees, you will be required to report 1099's to them, and again using a seperate EIN for your business reporting is advisable to protect your identity.

May 21, 2008 2:33 pm

I really appreciate the feedback.  Thanks jw.

May 22, 2008 12:02 am

PLEASE hire a professional to give you advice on this matter.  You seem to be doing exactly what so many investors do, try to save money doing it yourself with help from the internet. In the end it's worth what you pay to know you are doing it right.