Questions About LLC EIN

Forum|Forum|1 year ago
December 29, 2024
1 reply
22 views

Hi there,

I formed a single-member LLC in New York and obtained an EIN shortly after. I believe the LLC was taxed as a disregarded entity at that time. Later, I filed a form with the IRS to change the tax classification to a C-corporation. In this case, do I need to obtain a new EIN, or can I continue using the EIN that was issued after the LLC’s formation? The ownership and structure of the business have not changed — only the federal tax classification.

I appreciate your time and assistance.

Not A Product Question

pk_

Level 15

@Hailun Feng , my personal preference would be to ask for a new EIN for the C-corp. I say this because (a) it is clean cut change to a new entity; (b) a C-Corp has a different type of account/ accounting than an LLC; (c) generally you have to choose the reporting entity class by the first filing --- this is because a C-Corp is very different from a dis-regarded entity -- it stands on its own. ( even if the DBA and type of business is the same . Also your creditors will have different recourse than as a dis-regarded entity.

Also note while you can prepare your dis-regarded entity with Individual TurboTax, you will need TurboTax Business to do the one for your C-Corp.

That's my view based on my own experience with dis-regarded entity and C-Corp.

Is there more I can do for you.

Hailun FengAuthor

Level 4

Thank you. The entity itself is still an LLC. It is just the tax classification has changed. This is what I found on IRS website.

Limited liability company (LLC)

Get a new EIN if you:

Form a new single-member LLC and choose to be taxed as a corporation or S corporation
Form a new single-member LLC and have to file excise or employment taxes
Form a new multi-member LLC

You don’t need a new EIN if you:

Change your name or locations
Report income tax as a branch or division of another entity and you don’t have employees or owe excise tax
Convert a partnership to an LLC classified as a partnership
Change your tax election to a corporation or S corporation
Form a single-member LLC and don’t choose to be taxed as a corporation or S corporation and don’t have employees or owe excise tax

pk_

Level 15

@Hailun Feng I have no issue with the IRS position -- I was trying to cut the connection. from the LLC to C-Corp. Also note that the last paragraph suggests that you have to choose during the first year ---- as you said in your case you have filed under SSN ( or did I understand it wrong ). You can always visit the local IRS office and get the official position. Although if you had employees that continue from LLC EIN to C-Corp EIN (? ) , how IRS keeps track. That is one of the reasons why I was suggesting a clean new EIN -- that way for the IRS employees are employed by a new and different "employer "

What are you trying to achive ?