LLC tax filing

[hntrust]

My daughter formed a single member LLC in North Carolina. She intends to elect to file as a sole proprietor and will use Schedule C to report income.  Does she have to obtain an EIN in the name of the LLC.  If so does the EIN get entered on Schedule C?  Also in the future if the business grows where it may be advantageous to file as an S Corp, would she be able to make that election using the same LLC or would she need to form a new LLC and then elect to be taxed as an S Corp?

[Anonymous_]

Refer to the link below.

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...

Essentially, she does not need an EIN unless she has employees.

Further, she can make an election to have her LLC treated as an S corporation for federal income tax purposes by timely filing Form 2553 (i.e., no need to form a new LLC).

See https://www.irs.gov/instructions/i2553

[hntrust]

A slight clarification on my question.  She is a health provider and all providers that offer services through a corporation or LLC need to obtain an NPI (National Provider Identifier) in the name of the company from the US Department of Health and Human Services.  The NPI is used so insurance companies can reimburse the company for claims filed on behalf of a patient.  On the form they request an EIN for the company.  So in this case she needs to get the EIN for insurance purposes.  So when filing Schedule C it is under her SSN but how does the IRS link payments from insurance or cash paying clients made to the LLC to her SSN?

[Anonymous_]

When she applies for the EIN, she will have to provide her SSN (so they will be linked).

[Mike9241]

this is not a tax question.   even as an  LLC that doesn't elect corporate taxation I would still get an EIN. this is so if she has to issue 1099's she is giving away her SSN which can lead to identity theft 

[Critter-3]

In the future if she wants to switch from a single member LLC to an S-Corp she will need to get a new EIN.