Hey LLC, show some ID
A new business structure sometimes requires a new tax ID.
Nasser Rentia, Falls Church, Va.
I am a sole proprietor and am considering forming an LLC. I currently have a tax ID as a sole proprietor. Do I need to get a new tax ID? The IRS requires a new tax ID when forming an S-Corp, but I wasn’t clear on their rules for forming an LLC.
By Shara Rutberg, Fortune Small Business contributor
Dear Nasser: You’ll definitely want to check with the IRS regarding your specific company, says Will Vehrs, communications manager at the Virginia Department of Business Assistance. In general, it depends on whether or not you have employees, says Bruce Friedland of the IRS communications team. For further information, check out the IRS Web site.
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Related links:
LLC vs. S-corp: Business structures 101
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Yes. You probably do need to get a new tax ID. IRS is very strict, as you may know and you won’t to get in trouble with them.