Hi, I just set up an LLC in NY for my consulting practice. I am the only member of the LLC and don't have any employees.
I need help with a couple of forms that I must complete. I have yet to get an accountant, so I'm hoping someone can help me here in the mean time.
1. I recently received LLC/LLP Request for Information (TR-570) from NYS Dept of Taxation and Finance. It asked, "indicate how the LLC will be treated for federal tax purposes", so knowing that I did not want the business to be treated as "corporation" or "partnership", I checked off "sole proprietor" and answered "yes" to the question, "are you a single member?". Am I correct to check off "sole proprietor"?
The form then asks for "EIN # assigned to the LLC", so I went on the IRS website and applied for the EIN and filled it in. At the bottom of the same page, it says, "check here if the LLC is a single-member LLC that is disregarded as an entity separate from its owners for federal and NY state tax purposes. The disregarded entity should obtain a federal EIN." I searched the term, "disregarded", on IRS website and NYS website and read up on what I found but didn't quite understand. Is my LLC a disregarded entity? Should I be checking the box indicating so?
Finally, right below, it asks for "owner's legal name and EIN" Is it expected that there's a separate EIN for LLC and another EIN for myself?
2. I am also having to fill out a W-9 to provide to my client.
In the section where it asks to check appropriate box for federal tax classification, am I checking off on the "individual/sole proprietor"? or "limited liability company"? Confusion here is that right next to the LLC option, it asks, "Enter tax classification (C= C corporation, S=S corporation, P=partnership)", and since my LLC does not have any of these three tax classification, do I check off on the individual/sole proprietor box instead?
Also, in the TIN section, I'm confused as to whether I should be putting down my SSN or EIN # I obtained for the LLC.
Reading through the instruction for W-9, it says, "If you are a single-member LLC that is disregarded as an entity separate from its owner (see Limited Liability Company (LLC) on page 2), enter the owner’s SSN (or EIN, if the owner has one). Do not enter the disregarded entity’s EIN. If the LLC is classified as a corporation or partnership, enter the entity’s EIN."
I (as owner) don't have an EIN, but do have entity's EIN. Should I apply for EIN as owner? And should I be using that when I get it or use the EIN I already got for the LLC?
I need help with a couple of forms that I must complete. I have yet to get an accountant, so I'm hoping someone can help me here in the mean time.
1. I recently received LLC/LLP Request for Information (TR-570) from NYS Dept of Taxation and Finance. It asked, "indicate how the LLC will be treated for federal tax purposes", so knowing that I did not want the business to be treated as "corporation" or "partnership", I checked off "sole proprietor" and answered "yes" to the question, "are you a single member?". Am I correct to check off "sole proprietor"?
The form then asks for "EIN # assigned to the LLC", so I went on the IRS website and applied for the EIN and filled it in. At the bottom of the same page, it says, "check here if the LLC is a single-member LLC that is disregarded as an entity separate from its owners for federal and NY state tax purposes. The disregarded entity should obtain a federal EIN." I searched the term, "disregarded", on IRS website and NYS website and read up on what I found but didn't quite understand. Is my LLC a disregarded entity? Should I be checking the box indicating so?
Finally, right below, it asks for "owner's legal name and EIN" Is it expected that there's a separate EIN for LLC and another EIN for myself?
2. I am also having to fill out a W-9 to provide to my client.
In the section where it asks to check appropriate box for federal tax classification, am I checking off on the "individual/sole proprietor"? or "limited liability company"? Confusion here is that right next to the LLC option, it asks, "Enter tax classification (C= C corporation, S=S corporation, P=partnership)", and since my LLC does not have any of these three tax classification, do I check off on the individual/sole proprietor box instead?
Also, in the TIN section, I'm confused as to whether I should be putting down my SSN or EIN # I obtained for the LLC.
Reading through the instruction for W-9, it says, "If you are a single-member LLC that is disregarded as an entity separate from its owner (see Limited Liability Company (LLC) on page 2), enter the owner’s SSN (or EIN, if the owner has one). Do not enter the disregarded entity’s EIN. If the LLC is classified as a corporation or partnership, enter the entity’s EIN."
I (as owner) don't have an EIN, but do have entity's EIN. Should I apply for EIN as owner? And should I be using that when I get it or use the EIN I already got for the LLC?
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