I started a Single Member LLC (disregarded entity) with an EIN in 2018. It took over the sole proprietorship work I had before. How do I approach this in Turbotax H&B?

[jdvaile4]

My "old" business was just a sole proprietorship under my name for all my 1099-Misc income. I used my SSN. Starting in 2018 I formed a Single Member LLC (disregarded entity) and got an EIN under my personal name. Since my work essentially hasn't changed, should I just edit the existing sole proprietorship to add my LLC name and personal EIN?

[Coleen3]

Yes. The EIN is required.  Every state allows you to form an LLC, when you convert your sole proprietorship to an LLC. To do so, you will have to contact your Secretary of State for the correct forms.

[jdvaile4]

Thank you for replying. I have an EIN for both the LLC and myself. As a SMLLC (disregarded) working as an Independent Contractor with no employees nor excise liability, I'm under the impression I file my taxes through my personal EIN (or SSN), is that right?

[Coleen3]

The reference is that once it becomes an LLC, you need a new EIN. The limited liability company (LLC) forms a new legal person. That person is now separate and apart from you.

[jdvaile4]

I received an EIN in 2018 for both myself, and my LLC formed in 2018. I previously filed with my SSN as a sole proprietor before I formed the LLC. Simply, I'm trying to solve how to update my 2017 TurboTax sole proprietorship info with my new LLC, which does exactly the same business as before.

[Taxathrone]

@jdvaile4 -- in case it's still helpful (or give us an update on what you did / learned?), the IRS now says this:

Schedule C instructions says "if you are the sole owner of an LLC that is not treated as a separate entity for federal income tax purposes, enter on line D the EIN that was issued to the LLC (in the LLC's legal name) for a qualified retirement plan, to file employment, excise, alcohol, tobacco, or firearms returns, or as a payer of gambling winnings. If you do not have such an EIN, leave line D blank."

[jdvaile4]

@Taxathrone Thank you for this. Do you happen to know if this would also apply to Form W-9?

[Taxathrone]

@jdvaile4 -- the instructions are actually different for the W-9 (confusingly enough!). On page 4 of the instructions for the W-9, it says: "If you are a single-member LLC that is disregarded as an entity separate from its owner, enter the owner’s SSN (or EIN, if the owner has one). Do not enter the disregarded entity’s EIN."

[jdvaile4]

Thanks, that's what I've been doing, so good to hear I didn't screw it up! If only the IRS could be more confusing 😉