Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
My previous reply was submitted accidentally. What follows is the part left off:

About six years ago the IRS issued a reporting requirement for sole proprietorships it issue the owner's social security number for such third party reporting. This now applies even to the interest bearing cash accounts held in the name of the proprietorship. This facilitated the matching program used by the IRS.

Now comes the single member LLC essentially taxed as a sole proprietorship. Basically, the only reason to obtain an EIN is for payroll reporting and retirement plans. But if you obtain an EIN before actually needing to nothing is required by the filer. And the IRS has much more sophistication in the computer records (and the SS-4 application form information) for such entities. So we avoid "why haven't you filed XYZ form?" questions.

HJ
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement