topic Re: Questions About LLC EIN in Get your taxes done using TurboTax

Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 19:10:12 GMT

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.

Re: Questions About LLC EIN

pk — Sun, 29 Dec 2024 20:05:26 GMT

@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.

Re: Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 20:21:18 GMT

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

Re: Questions About LLC EIN

pk — Sun, 29 Dec 2024 20:30:18 GMT

@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 ?

Re: Questions About LLC EIN

M-MTax — Sun, 29 Dec 2024 20:30:31 GMT

Yeah, you don't need a new EIN in this case.

Re: Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 20:35:24 GMT

Thank you all. The LLC was formed on April 6, 2021, and we obtained the EIN shortly after, in May. In November of the same year, we changed the classification to a C-corporation and filed taxes for the first year as a corporation. The tax classification is the only change. It is a single-member LLC with no employees. I just want to confirm whether a new EIN was required, given that the only change was the tax classification.

Re: Questions About LLC EIN

M-MTax — Sun, 29 Dec 2024 20:39:42 GMT

New EIN is not necessary, but you know you're going to be filing an 1120 from now on, right?

Re: Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 20:41:08 GMT

Thank you! Sorry. One last question. My understanding is that a new EIN is only required when the business ownership and/or structure change through amendments to the state. A change in tax classification does not constitute a change in business ownership or structure. Is this correct? Thank you again.

Re: Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 20:41:50 GMT

Thank you! Yes, my tax account has been filing that since the first year.

Re: Questions About LLC EIN

M-MTax — Sun, 29 Dec 2024 20:54:24 GMT

A change in tax classification does not constitute a change in business ownership or structure. Is this correct?

No, not for this type of change. Correct.

Re: Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 20:59:15 GMT

Thank you! Sorry to be annoying but confirming for the last time, I don’t need a new EIN for my LLC given it was only a federal tax classification change from disregard entity to C-corporation and I can continue using the old EIN obtained after formation?

Re: Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 21:01:02 GMT

And it is a single member LLC with no employees. The first year’s taxes was filed as a C-corporation.

Re: Questions About LLC EIN

M-MTax — Sun, 29 Dec 2024 21:11:40 GMT

The LLC can continue using the same EIN after electing to be taxed as a C corporation.

The LLC will be filing an 1120 C corporation income tax return.

Re: Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 21:14:07 GMT

Thank you. Does it matter if the LLC is a single member or not in this case.

Re: Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 21:20:00 GMT

Also, does it matter if the single member LLC was taxed as a disregarded entity before the tax classification to C-corporation. The first year was filed as a C-corporation though for taxes.

Re: Questions About LLC EIN

pk — Sun, 29 Dec 2024 21:37:53 GMT

@Hailun Feng what am I missing here ?

You said the first year was filed as C-Corp and then you say was taxed as dis-regarded entity -- it cannot be both. IF during the first return you filed as a C-Corp with its own EIN -- then it was and has been taxed as a C-Corp, independent of the you the owner -- it stands on its own.

Or are you saying that the entity has a different tax year i.e. it is not a calendar year entity ?

I repeat , if you have already filed the LLC as a C-Corp on its return then all this discussion is fruitless -- because you have attached the EIN to the C-Corp. It is done.

Re: Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 21:45:15 GMT

Thank you. Sorry I meant that before the tax classification to C-corporation, the LLC was taxed as a disregard entity by default? and before we switched the tax classification to C-corporation, we got the EIN and then switched the tax classification, and for the first tax year, we filed the tax as a corporation with the old EIN. IRS also approved our 8832 form to switch to C-corporation classification with the old EIN. We never filed taxes with the old EIN as a disregard entity — always as a C-corporation. Hope this is more clear.

Re: Questions About LLC EIN

pk — Sun, 29 Dec 2024 21:48:24 GMT

@Hailun Feng . oh, in that case you done all needed items . You do not need a new EIN -- because IRS has already linked the C-Corp to the EIN issued earlier.

You are done.

Thank you for the explanation.

Is there more one of us can do for you ?

Re: Questions About LLC EIN

Hailun Feng — Sun, 29 Dec 2024 22:01:04 GMT

Thank you! I do remember that when we applied for the EIN, we marked the LLC as a disregard entity and when we obtained the EIN, my tax account filed the 8832 file to switch the classification to C-corporation using the old EIN. We later received the approval notice for 8832 with the old EIN. We have never filed taxes for the LLC as a disregarded entity always C-corporation. It is just shortly after the LLC was formed, it was a disregard entity and we marked it as a disregard entity when applying for EIN but switched to C-corporation shortly after. Do I still need a new EIN in this case for a single member LLC?

Re: Questions About LLC EIN

pk — Sun, 29 Dec 2024 22:15:36 GMT

@Hailun Feng , since IRS has already transferred/ attached the EIN to the C-Corp. , you are done ---- EIN is used for filing employee tax deposits as also the entity's own return -- it is only a tax ID (just like ITIN for non-resident or those not eligible for SSN ) . .No worries for you .

If by chance you are not convinced of this position, please consider visiting the nearest IRS office and discuss this situation -- they are generally quite helpful.