Thanks for the video, I was able to follow through easily. Probably you could update the video to include my comment as follows. I am a Canadian and wanted to apply for EIN after the LLC was formed. Your video mentions that I will have to have a ITIN to apply for EIN. That is true when using online application, However by downloading the paper version of form SS-4, I was able to fill "Alien Individual" in place of the SSN/ITIN field and was able to Fax the application. I was advised by IRS on phone to do so.
LLC University thank you very much for additional lessons for no US aliens! I'm sorry for my previous comment - I was very stressed and wrote something ugly. My bad. I have found everything I needed on your web site and you saved me a lot of money. I will make a donation. Thank you for promoting NortWest, they seem very nice - you saved my time on searching for an agent. ♥️
Two notes from my side :) 1) while filing for EIN in 9a we need to check 'other' and write 'disregarded entity...' 2) in your lesson about Alaska LLC in section 'business license' it is stated that we might need reseller permit. This is a bit misleading. I got an email from the state - they don't issue sellers permissions (no sales tax*)
Hope it helps! Lots of love!! Thank you!
Thank you so much for your comment. We're soon updating our EIN lessons to explain that. And we have new lessons coming out for non-US citizens/residents about how to get an EIN (without an SSN and ITIN). We also just published How to get an ITIN if helpful for future readers of this comment: https://www.llcuniversity.com/irs/how-to-apply-for-an-itin/. Thanks Margaux! Hope your move went well :)
I've just spent my entire day doing research on ITIN, 16 hours literally!!
I really appreciate all the information you provide for free and step by step, gently holding my hand and walking me through the process of forming my first and dearest LLC.
But because of this tiny mistake I completely freaked out and lost my sh*t a couple of times while reading ITIN application process - how I need to mail my original ID with my address on it, when my ID doesn't have any address on it and they're gonna reject it, how the process will take 6-7 weeks and they will mail the ID back to me when I'm going to move to another country in a month and I don't know what address to put in the form to get the documents back, so I need to move first, settle and then apply and a number of other terrible manipulations I need to do in order to apply for the ITIN, for example to file a federal tax return, when I don't know anything about it and will have to hire a layer anyway!
And just 15 minutes ago I found an article saying that I can file EIN by fax. I headed to youtube to leave a comment for others and give a link to the article and I see that you are aware about it! LOL "Video is outdated and I've made a mistake, sorry" - that is a nice attitude you know! I've lost half of my hair today and the other half has turned gray :'D
A tiny note on your website right above the video, saying we don't need ITIN to file by fax, would have changed the game. Thank you!
do you need an llc number? with an ein number? i have my own ssn number im in ny area. im reading so many things im confused. i want to open an etsy shop i have my own acc set up to do that, so what do i need to do? TIA
Hey JC, I don't understand your first question. Can you please rephrase it? Did you form an LLC? This video is about how to get an EIN for those who have formed an LLC (not those who are operating a Sole Proprietorship). Thanks.
My business will operate out of CA, but I read so much about the advantages of registering it in DE that that's what I did. Now my accountant is telling me it's mandatory I register in CA. So I guess I wasted 300 bucks. Does anyone know? I found the article below, but it does not get into the specifics.... https://www.nolo.com/legal-encyclopedia/question-must-llc-be-formed-same-28126.html
If you're business will operate in CA, then yes, you must register your DE LLC as a Foreign LLC in CA, or form a Domestic CA LLC. It's likely easier (and less expensive in the mid to long-term) to dissolve the Delaware LLC (https://www.llcuniversity.com/delaware-llc/dissolution/) then just form an LLC in CA: https://www.llcuniversity.com/california-llc/. Hope that helps.
at 4:45 why didn't you say ANYTHING about those forms 2553 or 8832? that was primarily why I watched this video. i'll look through your other videos to see if there's some info there. Thanks. Otherwise good vid.
Hey Wade, we have info on the 2553 here (video soon): https://www.llcuniversity.com/irs/llc-taxed-as-s-corp-form-2553/. 8832 would be used for C-Corp tax election, which we don't cover in great details since it's not commonly used. Hope that helps.
I'm not sure about import rules. You likely need a reseller permit/license, depending on the state. But no, you don't need an LLC to get an EIN. You can operate as a Sole Proprietorship and get an EIN, however, a Sole Proprietorship doesn't have liability protection like an LLC. More info here: https://www.youtube.com/watch?v=3J7HG6IuV_c
You are correct. This video is old and that information was incorrect. Apologies for the confusion. File Form SS-4 by mail or fax and enter "Foreign" on line 7b. We have instructions here: https://www.llcuniversity.com/irs/how-to-apply-for-ein-without-ssn/ (page will be live in about 1 week).
Only if it's a single-member LLC that meets a few requirements, however, most banks will want an EIN when you open a bank a bank account for your LLC. It's best to just get an EIN once your LLC is approved. Hope that helps.
Hi Ashley, I would read the following two articles on our site: What does an LLC protect you from (https://www.llcuniversity.com/llc-asset-protection/) and LLC vs Sole Proprietorship (https://www.llcuniversity.com/llc-vs-sole-proprietorship-vs-corporation/). If you decide to form an LLC, we have step-by-step instructions here: https://www.llcuniversity.com/florida-llc/. Hope that helps.
Hi Ashley, an LLC is not required to start a business. You can operate as a Sole Proprietorship if you choose, however, there is not personal asset protection with a Sole Proprietorship. What state are you in? I'll send you the instructions.
Hey Mike, it doesn't work like this with the IRS. There is just one Responsible Party (https://www.llcuniversity.com/irs/ein-responsible-party-for-llc/) on file with the IRS. Each person, simply by the nature of them being an LLC is required by law to report the income/losses/credit/deductions on their personal tax return. Hope that helps.
Did you file an Articles of Organization (or Certificate of Organization or Certificate of Formation) with the Secretary of State? Or did you just put LLC in your business name when you got the EIN? I'd stop by our site and follow our LLC course for your state. It's covers all bases. Hope that helps :)
I have a question I am on social security disability and state medicade I am way below the poverty level and cant work. I collect coins when I get extra income its not much on average I can save $25 in a month and at the end of the year each year if I have any extra money I did not need witch happenes sometimes I like to use it to buy a few coins. well some of the local and online places I buy from will not sell to you without you giving them a ein or a copy of a business license. I would like yo no if I get a ein will it screw up my disability at all and my state aid since I am not aloud to make more money then I do and even tho I will not be making money with the ein I am scared the state will see it as a business with income.
thanks so much for the help. I guess its more then a process I wanted but I think it may be worth doing what you say as down the line I am hoping to start a business and hopefully get back on my feet. thank you so much.
If you become self-employed, you need to update the SSA. And you'll want to look out for Substantial Gainful Activity (SGA): https://www.ssa.gov/oact/cola/sgadet.html. For more info, please see my reply to William on this page: https://www.llcuniversity.com/who-can-be-llc-members/
Thank you so much for those videos. I was able to submit my application for a LLC last night. I have a question though; about a few months ago, I start selling on Amazon which required an EIN, but it was associated with my name. How do I transfer that EIN number to the LLC? Is that even possible or do I have to have a new EIN?
Hey Tony, awesome! You're welcome. Yes, you can transfer that EIN to your LLC if you're the sole owner by writing a letter to the IRS. We don't have a template letter for this available yet. You can also just get a new EIN for your LLC, which is often easier and creates less confusion. Then after you file your final schedule C for 2018 taxes (in 2019), you can cancel that old EIN if you'd like. Just google our name + "cancel ein" and you'll find those instructions when the time comes. Hope that helps.
You're welcome :) When you file the Sole Proprietorship portion on your taxes next year (April 2019 filing for 2018 activity), mark your Schedule C as "final". We recommend working with an accountant if you're not already. Then cancel that EIN later in 2019. Here's instructions: https://www.llcuniversity.com/irs/cancel-ein/. You don't have to do this first though before forming your LLC and getting a new EIN.
Hey Devanta, the start should should be the date your LLC went into existence. If you look on your stamped and approved Articles of Organization (or Certificate of Organization, or Certificate of Formation), that's the date your LLC started. Hope that helps!
Hi..your vid was very helpful..i just applied for my LLC..switching from Sole proprietor..my ole EIN is attacjed to my social security number. Should I apply for a new EIN?..Im in the process of signing my commercial lease and would like to establish business credit apart from my personal credit. Any suggestions?
Yes, it's easiest to get a new EIN after your LLC is approved. After you file your final tax return for your Sole Proprietorship, you can cancel the old EIN. Here's the instructions: https://www.llcuniversity.com/irs/cancel-ein/. We don't have any info on business credit. It's not something we get into as we're not huge fans. There's a lot of shady stuff going on in that space. Oh, here's some additional info as well for changing from a Sole Proprietorship to an LLC: https://www.llcuniversity.com/change-convert-sole-proprietorship-to-llc/. Hope that helps!
Make sure your LLC is approved first before getting an EIN. Also, if you don't have an SSN or ITIN, you can't get an EIN online. You'll need to mail or fax Form SS-4 (https://www.irs.gov/pub/irs-pdf/fss4.pdf) to the IRS. Just write "Foreign" on line 7b.
You can apply your existing EIN to your LLC by writing the IRS a letter, but it's easier to just get a new EIN for the LLC since it only takes 10-15 minutes to run through the application. Just make sure to wait until your LLC is approved before applying for a new EIN. Hope that helps.
Thanks for the vids they have been extremely helpful. When I applied for my EIN, I put the right name in which is THE COVERING. when it went over to give me the ein # I only saw the COVERING. Ii tried changing it but it would not go back. Do i need to do anything or leave it as is?
If you have no income and you're not deducting any expenses, then you don't need to include it in your federal 1040 return. However, you have a filing with your state. We're unable to offer guidance in terms of taxes as it varies widely by business, person, and location. Here is information on how to find an accountant to speak with though: https://www.llcuniversity.com/how-to-find-an-accountant-for-your-llc/
I have another question, I registered the business but Im still fine tuning a few things so have not started offering my services as yet, so there is no money coming in. Do I still have to file taxes? and if so how do I go about it?
Hi Joanna, did you form an LLC? If you stop by our website and follow our LLC course, you can form an LLC, then use your Registered Agent's address when obtaining your EIN. Make sure to get the EIN after the LLC is approved. You'll also need to mail or fax form SS-4 to the IRS. If you don't have an SSN or ITIN, you cannot obtain the EIN online. Hope that helps.
It's mostly the same. You'll just select "2" from the drop down. Multi-member LLCs, by default, are treated as Partnerships by the IRS. We have more details written here in our "How LLCs are Taxed" article: https://www.llcuniversity.com/irs/how-are-llcs-taxed/. If you have a husband and wife LLC, please see this article about the Qualified Joint Venture: https://www.llcuniversity.com/irs/qualified-joint-venture-husband-wife-llc/
The benefits of creating an LLC typically outweigh any perceived disadvantages and are typically unavailable to sole proprietorships and general partnerships.
Right now I'm a sole proprietor because I rent rooms
I need to create an LLC to cover myself. And
Protect assets. LLCs provide limited liability protection to their owners (members), who are typically not personally responsible for the business debts and liabilities of the LLC. Creditors cannot pursue the personal assets (house, savings accounts, etc.) of the owners to pay business debts. Conversely, in a sole proprietorship or general partnership, owners and the business are legally considered the same—leaving personal assets vulnerable.
Pass-through taxation. LLCs typically do not pay taxes at the business level. Any business income or loss is "passed-through" to owners and reported on their personal income tax returns. Any tax due is paid at the individual level.
Heightened credibility. Forming an LLC may help a new business establish credibility with potential customers, employees, vendors and partners because they see you have made a formal commitment to your business.
Limited compliance requirements. LLCs face fewer state-imposed annual requirements and ongoing formalities than S corporations and C corporations.
Flexible management structure. LLCs are free to establish any organizational structure agreed upon by the company owners. LLCs can be managed by the owners (members) or by managers, unlike corporations which have a board of directors who oversee the major business decisions of the company and officers who manage the day-to-day affairs.
Few restrictions. There are few restrictions on who can be an LLC owner or how many owners an LLC may have (unlike S corporations).
Thank you so much for your videos. Say for instance I am forming a multi member llc (3 members). However two members are not US citizens and don’t have an SSN or ITIN so they want the third member who is a US citizen to list their info when applying for an ein. Is there any liability on the us citizen member?
Hi Izaak, the US citizen is known as the responsible party. We've written more about this here: https://www.llcuniversity.com/irs/ein-responsible-party-for-llc/. You only need one person on file with the IRS for the EIN. You do not need to include all members. Hope that helps.
Thank you for all the good information. I have a question. I have a LLC single member). I recived the LLC request Information and there is a part in this form that I am not sure.
Part 3 EIN
*check here if the llc is a single member llc that is disregarded as an entity separate from its owners for federalan new york state tax purposes. The disregarded entity should obtain a federal EIN .
I am almost possitive that I do not have to check it because my LLC has a EIN and I want my taxes separate.
Also, below that they are asking me for owners legal name and EIN ( is this mean my personal EIN? )
You're referring to the New York Department of Taxation and Finance's "LLC/LLP Request for Information". In part 3, you'll just enter your EIN. Do not check the box ("check here if the LLC is a single-member LLC that is disregarded as a separate..."). You are correct that you don't need to check it, but your reasoning is not correct. A single-member LLC is taxed as either a Sole Proprietorship or a Disregarded Entity. If the single member is a person (which is your case), the IRS + NY state will tax your LLC as a Sole Proprietorship. If your LLC is owned by another company (like another LLC), then the IRS treats your LLC as a Disregarded Entity. Hope that helps! We have more information on how LLCs are taxed here: https://www.llcuniversity.com/irs/how-are-llcs-taxed/
The EIN does not make it mandatory to file a return. If you have no activity, you likely don't need to file, but you should speak with a few accountants to be sure as we cannot provide tax information. Check out this strategy: https://www.llcuniversity.com/how-to-find-an-accountant-for-your-llc/
Hello hello I have been watching these great videos and I followed the llc creation one and now... I HAVE A LLC!!! YEIIIIII!! I have to thank you for that, I do not know why but everyone is trying to convince you that doing this is harder than sending a rocket to the moon but anyways I have a few question for you now... first of all I received my confirmation and certificates and everything and now I am working to get an EIN, I want to know if I could get a EIN with a b1 visa for my LLC? If yes, how do I do it?? I know it is to much to ask but it could be material for a new video (lol) other question is, how can I get an ITIN number with b1 visa for the LLC?? Do I really need it? And finally but not less important if I choose the "existing business" instead of "individual" does the existing business has to pay taxes after a year?? Or it is just a formality to give the EIN? again... I hope the best for you and everybody around you thank you
Hi Emiliano, thanks for the kind words. Glad the videos were helpful! You can certainly get an EIN from the IRS (even if you don't have a SSN), but I'm not sure how that will affect your b1 visa (we haven't fully researched this yet). You'll need an ITIN if you have US tax obligations. But you don't have to get that right away, as in, there's not a major rush. However, I recommend speaking with an accountant to make sure. Same thing about your "existing business" question. You'll want to speak with an accountant. I believe you should be selecting "started a business" though, since you just formed the LLC. Also, if you don't have an SSN or ITIN, you cannot obtain an EIN via the online application. You'll need to mail or fax Form SS-4 (https://www.irs.gov/pub/irs-pdf/fss4.pdf) to the IRS. I recommend a digital fax as the approval of the EIN will be quicker (instead of mailing it in). Hope that helps.
For my business details, I checked off "services" and it asked me to specify the primary business activity. I put down "Facebook ads" though I realized I should have put down "marketing agency" I submitted the form. Is that alright?
No, you don't have to get a new EIN for changing business activities. You can see here (under Sole Proprietors): https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein. It's listed as "You operate multiple businesses."
Thanks a lot! one more thing, if Facebook ads are no longer popular in 5-10 years or if I no longer enjoy Facebook ads and I decide to move onto something like Google or Linkedin ads, would i have to cancel my current EID and get a new one? I just would like to know for the future :)
Hey Len, don't worry. The IRS doesn't "hold your feet to the fire" and force you to keep doing the same thing... or prevent you from other business activities. They just want to initially know what the business is about. "Facebook ads" is fine. Hope that helps :)
Hey Guillermo, reference number 105 means that you've made too many attempts online to obtain the EIN (using the same SSN, ITIN, or EIN), each leading to an error reference/code. Solution: Wait 24 hours and try the EIN Online Application again. If you still receive an error message, then we recommend filing Form SS-4 by mail or fax.
Hi! I have question, I am applying fo EIN what address will be use in EIN my home address in California my physical address to put in IRS? Or my LLC agent address in Mississippi? I am confused, please help
LLC University that’s a lot LLC university, I have the same question as Bess , I used register agent too , I don’t know which address shall I put in for EIN application , if I put my own address , will my address on public search ? That will defeat the purpose of using register agent address when I apply for my LLC . Please help me on this question . Thank you very much .
Hi, My husband and I started a business and today we obtained an EIN as an LLC Partnership. However, after a few hours we discovered the high franchise tax in California and no longer want to be an LLC. Should we cancel our current EIN and apply for a new one, or is there a way to change the business type to our already existing EIN? Also, if we do apply for a new EIN is a partnership the best option for a married couple that files a joint tax return? Would a sole proprietorship be more beneficial?
Hope my questions make sense :/
I hired Northwest Registered Agent as well and almost put their address down on the EIN application site. Good thing I read these comments and put my Brooklyn address down. This important detail should be in the video!
Then you never actually formed an LLC. A lot of people make this same mistake... thinking that getting an EIN and selecting "LLC" in the early steps formed an LLC. It does not. The LLC is formed at the state level. In your case, in CA. Then you'd obtain an EIN later on. You should cancel this EIN (instructions here: https://www.llcuniversity.com/irs/cancel-ein/) and then re-evaluate before moving forward. We have some helpful videos here in our learning center: https://www.llcuniversity.com/learning-center/. Hope that helps.
Thanks for the video. Quick question; I'm making an LLC for multi-members. But IRS website only require me to put 1 person's information (name and SSN). Do I have to put my partner's information at later date? or did I miss 'add information for additional member' tab somewhere?
The IRS just needs 1 Responsible Party. The rest of the LLC Member's are listed in the Operating Agreement. We wrote more about the EIN Responsible Party here: https://www.llcuniversity.com/irs/ein-responsible-party-for-llc/. Hope that helps.
If you file by mail, you will receive back a stamped and approved Articles of Organization. Approximate approval time is 1-2 weeks. If you file online, you'll also receive a stamped and approved Articles of Organization. It will arrive by email within 5 minutes of filing.
How to know if they treat the company as Sole Proprietor or Corporation or Partnership? I know it is one member but if the llc chosen as Sole Proprietor on taxes does that mean in the event of suing the company the person also will be liable instead of LLC?
Hi Jon, by default, the IRS will tax a single-member LLC like a Sole Proprietorship. And the IRS will tax a multi-member LLC like a Partnership. The LLC would need to make a special election for C-Corporation or S-Corporation tax statuses. And regardless of how the LLC is taxed by the IRS, this does not affect the legal/liability protection.
Hi, thank you so much for your video!! One question, I am an F-1 visa holder so I am not a US citizen, but I have my SSN and my EAD card . So do I still need to get an ITIN so that I can apply EIN with my friends? Thanks!
You don't need to change the Resident Agent in this case. You just need to change what's known as the Principal Office Address. You need to file an amendment to do this. For Tennessee LLCs, it's Form 4247 (Articles of Amendment): http://share.tn.gov/sos/forms/ss-4247.pdf. Filing fee is $20.
Hello! I watched your video and followed all the instructions; However, my LLC is made up of two members (my husband and I) so at the moment of starting the application we placed 2 members, and we kept LLC, I thought I also had to put my information. The fact was that we finished everything and SS-4 EIN appeared only with the name of it, now I do not know what else to do in the document besides it says something about FORM 8832. do you have any video that can help me with this FORM? Thank you.
Excellent! Thanks for your help and the material that you publish on your page, I made the document of operations and follow some of your recommendations to make the opening of the bank account. As soon as your answer, perfect !, I will take into account this, it would be good that you add this observation in the video in case someone else arises the doubt. At the time of making the taxes usually my husband uses a recognized company that supports us in those procedures, however I will be watching that they fill up all those form that you said to me. Thank you
Hi Cristina, you do not need to complete Form 8832 unless you want your LLC taxed like a C-Corporation (instead of a Partnership). The reason you are only seeing 1 name on the Confirmation Letter is because the IRS just needs 1 Responsible Party. They do not need the contact information of all members. They just need to know the number of members in order to know how the LLC will be taxed. So you did everything correctly. And the name you see at the top of the letter is the Responsible Party. But all LLC members are responsible for reporting the income/loss on their personal 1040 tax return. You'll also need to file a Partnership 1065 return and issue K-1s to the members. We highly recommend getting help from an accountant with this.
Thank you so much for the helpful video series. I filed my article of organization online and already got my filing receipt and certified copy of the article of organization. Can I apply for EIN right away or do I need to wait after the publication requirement is fulfilled?
Hey Darren, thank you for the nice comment. As soon as you have the approved Articles of Organization, you can apply for the EIN. You don't have to wait until you meet the NY publication requirement first.
First off thank you for your wonderful help. Now to my
question, if I were to file my llc with the DOS in new York using the northwest
registered agent, I would have to list Albany as my primary address for
publication purposes. When I apply for an ein number with IRS, would I have to
list the physical/primary business address as the northwest registered agent
address also? I am confused because with the department of state I would have
to list Albany as my place of business, but with IRS I would have to list New York
city as primary business address, if I am understanding what you said in the video
. I am assuming this difference wouldn’t matter much, and that I may be overthinking this, but would greatly appreciate
If a married couple are both members of a joint LLC, can they form a single member LLC? If yes, in the IRS form do they write total of members=1 even though both spouses are named in the LLC's articles of organization? Thanks in advance :)
Yes, you are correct, as long as the married couple files jointly and is located in a community property state (AZ, CA, ID, LA, NV, NM, TX, WA, and WI). If that's the case, during the EIN online application, you will list your state and select "2" members from the drop down. Then on the next step, the IRS will ask if the members are a married couple. You'll select yes. Then on the next step, the IRS will ask if you'd like to form a single-member LLC or a multi-member LLC. Choose single-member. The IRS refers to this type of taxation as a Qualified Joint Venture (QJV). Additionally, in your Operating Agreement, you'll list the owner as "John and Mary Doe, 100% owner" (treating the married couple as one unit). Hope that helps!
I recently got my Federal EIN and on the paper it said that I am supposed to file Form 720 by July 31st as that is when the quarterly tax report is due. My question is if I own an online clothing boutique, do I really need to file form 720 for quarterly excise taxes? Bc every time I look up anything pertaining to Form 720, I see articles about taxes on things such as gas, cigarettes etc but not clothing. I'm not exactly sure if clothing falls under the umbrella of 'retailers' in this case. I know you are not a tax expert but I thought to ask before I hire an accountant to ask them this question.
Hi Dyri, you can just cancel your current EIN (https://www.llcuniversity.com/cancel-ein/) and then get a new one. You don't have to dissolve your business and start all over with everything. Also, you can get the new EIN right away. You don't have to wait for the first one to be cancelled (since it takes the IRS about 30-45 days to do that and mail back a confirmation letter).
LLC University Ok so I made a mistake. On the paper for my EIN, it said that Form 720 was due by July 31st. Do I cancel my current EIN and get a new one or will I have to dissipate my business and start all over with everything?
If I close my LLC one day for any reason, what will happen to the EIN assigned to the LLC? Are they going to delete it or I can keep it? If they delete it my business credit history will vanish with it? I am asking in case I close the llc and want to open again after two years with a different llc name.
Nothing happens if you just let an EIN sit. It pretty much just sits in the IRS's database. Having an EIN does not require you to file taxes. We recommend cancelling EINs that are no longer in use for clarity and organization. Yes, if you open 2 LLCs (or more), each should have its own EIN.
Just out of curiosity, If I open two LLCs should/can I have two different EINs?
Is it something optional to cancel EIN after closing the LLC? What will happen if I do not close the EIN after closing the LLC? Filing taxes probably?
EINs are not deleted, but you can close the account after you dissolve the LLC. We have instructions here: https://www.llcuniversity.com/cancel-ein/. I'm not sure about business credit, as we don't specialize in this area.
I formed an Single-Member LLC for a small business online. I have no intention of having employees but I read that hiring your underage children is a good idea to deduct taxes. So, when applying for the EIN, did you choose to have employees even if it is my minor child?
Thanks for your reply. Its content is great.
Thank you so much for creating this video. It was so helpful. Just want to confirm, once I complete the articles of corporation and receive the email receipt. Does that mean my LLC is approved or do I need to wait for the certified copy in the mail or another communication via email before proceeding with setting up my EIN. Please note the filing will be done in NY.
If you file online in NY, the Articles of Organization is approved instantly. So once you pay and download your Articles of Organization (and other docs, if ordered), you're LLC is approved and officially in existence. If you file by mail, you'll need to wait until you receive back your stamped and approved Articles of Organization in the mail. Hope that helps!
Thanks for all your help I really appreciate it. My question is when I appied for our LLC EIN, I put two members but it only took my info and SSN. So my name is the only one on the EIN along with our business. Is this anything to worry about? Did I do anything wrong? Thanks again for all you have done to ease the confusion of this process.
Hey Joel, you did everything correctly. The IRS only requires one Responsible Party to be on file. Think of the Responsible Party as the contact person. Prior to that, when you entered 2 members, this let's the IRS know that the LLC will be taxed like a Partnership. The IRS doesn't need all members on file. Reason being, is the individuals are already responsible for reporting the LLC's income/loss on their personal tax return. Hope that helps clarify a bit further.
Thank you so much for this advice and guidance. I did not save the pdf welcome letter. Can I go back in and get it? If so, please help me. I tried already and it said I have to apply again. Thank you in advance.
You're welcome Andrew. Yes, having the number is what really matters. You should also just be able to give that to the bank without the confirmation letter, but it does depend on the bank you use. Make sure to call ahead of time on that one, just to be safe ;)
Hey Andrew, no need to sweat too much ;) The IRS will also mail you a copy of the EIN Confirmation Letter (Form 575) in a few weeks. If you'd like a copy now though, you can only get a Form 147 by calling in: 800-829-4933. Hope that helps!
I am a permanent resident with a green card here in the US, but still a citizen of my country of origin, (I use my passport from my country), can i still use my social security number? Or do i have to apply for the ITIN?
Hey Alex, this video is meant as a followup after someone forms an LLC. So you'd need to find the video on our channel, or it's a lot easier to go through our website (http://llcuniversity.com/) and form your LLC with those instructions. You'll find this exact video on our website in the state lessons. Hope that helps.
For the IRS, you can just use any address where you can receive mail. It doesn't have to be an actual "office" location. I know, their forms are poorly designed. You'll need to enter the Suite, Unit, Apt #, etc on the 1st line. For example, "123 Maple Ave Apt 3". Hope that helps!
When setting up an LLC and then obtaining an EIN - would not having employees now and marking that on the forms, prevent the LLC from having employees in the future - if employees were hired would there be any changes or need for additional forms to be filled out?
Hi Don, you can certainly say no now, but hire employees later. Yes, if you hire employees you'll need to take care of payroll, withholding taxes, state registrations, and possibly more, depending on your state. You'll need to speak with an accountant in your state though, as this can vary widely. Apologies I could not be more specific. If needed, here's my best tip to finding a good accountant: https://www.llcuniversity.com/how-to-find-an-accountant-for-your-llc/
Hi! thank you for your help with all of this! I got my ElN and we are a three members LLC. I´m not sure about what the 8832 Form and 2553 Form are. It says at the end, if I don´t agree with the default status of partnership, I should file them. Where can I find info about this? Thanks!
Hi Isa, you are very welcome! Form 8832 is to change your default tax status (by default, multi-member LLCs are "taxed as" a Partnership), typically to a C-Corporation tax status. Form 2553 is used to elect S-Corporation taxation. If applicable, S-Corporations cannot be owned by nonresident aliens. The S-Corporation taxation can help save money on self-employment taxes. The owners of the company then become "employee-owners" and must take a reasonable salary. The LLC owners will pay self-employment taxes on those salaries, but remaining profit (distribution) is not subject to self-employment taxes. You'll need to manage (or hire someone/some company) to handle payroll and you'll have to file payroll returns as well as a Corporate return. So your accounting fees will go up some (usually $1,000 to $2,000 on average). There are a ton more details though, so I recommend talking with a few accountants as you'll need enough net income to make the costs worth the savings. Check out this strategy: https://www.llcuniversity.com/how-to-find-an-accountant-for-your-llc/. Hope that helps!
Dammit! i just filled out the application and got my EIN but failed to put LLC in the name. I figured since it asked me the name of LLC it would automatically include it... what do i do now? How do I change that line?
Hi Erik, if you did everything else correctly, you can just change the name with a letter: https://www.irs.gov/individuals/business-name-change. Instructions are also on this page: https://www.llcuniversity.com/pennsylvania-llc/name-change-certificate-of-amendment/. Scroll down to the "Notify the IRS of Your PA LLC Name Change" section. Hope that helps!
Hey Paul, can you give an example along with your question? I did not understand. I sifted through the Ohio statute pertaining to name rules (http://codes.ohio.gov/orc/1705.05v1), but the restrictions are not listed. I recommend calling Business Services (614-466-2655) and double-checking. Hope that helps!
I'm glad I stumbled across this site because it is just what I needed. There are lots of pay for nothing companies out there and waiting to grab your cash. I will look to this site and pay for services now
Hey Patrick, you're right... unfortunately, there are a lot of shit companies out there. Our website will teach you how to do everything yourself, but if you don't have the time (or don't want to), we'll also file for you. We prefer to present the truth and all options to our readers :) Hope that helps. Let me know if you need anything else!
Hi Elana, we don't teach LLC formation for the sole purpose of building an artificial/inflated business credit profile. I recommend building an actual business. On that note, I'm not sure I fully understand your question.
Hey Johnny, yes, you can certainly apply for an EIN without being in the US, and without having a US social security number. You just can't apply online as it requires a social security number. Instead, you have to apply for your EIN by fax or mail and enter "Foreign" on Line 7b. Did you already form your LLC? Make sure your LLC is approved first before applying for the EIN. If you need a hand, give us a shout: https://www.llcuniversity.com/contact/
Hey Keeta, as long as the address is a street address in PA (not a PO box), then yes, you can use the address where you live. If you ever need to change that address, it's only $5 with the state. Also, two tips for you... it's best to follow our step-by-step PA guide on the website, as it's easier: https://www.llcuniversity.com/pennsylvania-llc/. And check out our "naming your buisness tips" article: https://www.llcuniversity.com/4-tips-for-choosing-a-business-name/. Let me know if you need anything else!
I haven't come up with a name just yet for the LLC. This will be in Pennsylvania. The LLC website asks for the address of the business, but I don't have the building yet so can I put my address where I reside?
For the principle/physical address, if we used Northwest (Albany) as the registered agent do we put their address ?
Same with the "Tell us about your LLC" page, for the county do we put Albany or the County we really reside in ?
The purpose of the IRS asking for an address is to ensure that their mail/correspondence will reach you. No one outside of the IRS should see this address (and there won’t be communication between the IRS and the NY DOS regarding this address), so you don’t have to list the temporary Albany address you used to meet the NY publication requirement. You can just list your normal/regular NY address here. Hope that helps.
Owned buildings at another site may be used as alternate workspace if a building cannot be occupied. This depends upon the location of the building and whether the building would be affected by the same hazard that prevented use of the primary building. The alternate facility may be a viable business recovery strategy if the building can be configured with the required equipment or existing equipment can be configured to need business requirements.
Systems and Equipment.
Evaluate these systems to determine whether they meet the needs of the program. Identify and plan to overcome emergency communication system limitations such as weak radio or cellular service or areas where a warning system cannot be heard. Upgrading this critically important system may be required. Verify that these systems are in reliable working condition.
If fuel, battery backup power or batteries are required, make sure the system can run for the required time and chargers are available. Document how to operate these systems and mark the locations of controls. Make sure the information is available during an emergency. Many of these systems also require periodic inspection, testing and maintenance in accordance with national codes and standards. Train staff so a knowledgeable person is able to operate systems and equipment.
Materials and Supplies.
Be sure to compile a list of available resources using the Emergency Response Resource Requirements and Business Continuity Resource Requirements worksheets as a guide.
Preparing for an emergency, responding to an emergency, executing business recovery strategies and other activities require resources that come from outside the business. If there were a fire in the building, you would call the fire department. Contractors and vendors may be needed to prepare a facility for a forecast storm or to help repair and restore a building, systems or equipment following an incident.
The following external resources should be identified within plan documents. Include contact information to reach them during an emergency and any additional instructions within the preparedness plan.
Public Emergency Services.
Contractors and Vendors.