As a freelancer, I have filed as a sole prop with my SSN for the last several years. I want to form an LLC, but ran into some issues. I got my EIN with the IRS as an LLC in 2022, but am planning to wait to file my LLC with the state (Tennessee) until 2023. Will I have any issues because of this come tax time?
Can we assume your LLC is open for business?
Also, that this is a single-member LLC?
Is it okay to get my EIN with LLC designation with IRS in 2022 and register for my LLC with my state in 2023 as far as taxes are concerned? I am not sure if my business is technically an LLC because I got my EIN from the IRS in 2022 with LLC designation, but I have not officially registered the LLC with my state. It will be a single-member LLC when it is officially registered.
I have been freelancing (graphic design) as a Sole Proprietor (not registered with the state officially because I don't have to for a Sole Prop). I have paid taxes using my SSN the last several years. I've begun to sub-contract work, and was advised to transition to an LLC, but can I wait until next month to begin annual LLC registration with the state?
Technically, you should have file articles of organization with your state.
LLC is a state entity, not a federal entity. Unless you have elected for the LLC to be an S-corp, the single-member LLC is a disregarded entity and you will continue to file Schedule C as a sole proprietor.