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DFREAMGREEN
01-15-2013, 03:12 PM
If I am the only person in a llc do I need a new tax ID number

DA Quality Lawn & YS
01-15-2013, 03:18 PM
I do believe you cannot use your SS# anymore.

Also, why do you have an LLC as a solo op? Any employees?
If solo, only reason for LLC is if you are in big biz debt. If debt free skip it does you no good.

DFREAMGREEN
01-15-2013, 03:21 PM
I can really tell you why, it not because debit. Somebody just pointed me in that direction

DA Quality Lawn & YS
01-15-2013, 03:35 PM
ok - not that llc is bad route, just not nec for a solo op.

TeamYardsale4
01-15-2013, 03:44 PM
DBA is best route for a solo operation right??

KeystoneLawn&Landscaping
01-15-2013, 05:41 PM
LLC can be advantageous to a solo when your income starts to climb. Talk to your CPA, they can advise the best because they know your numbers and business plan.

RussellB
01-15-2013, 06:19 PM
Doesn't the LLC protect your private/personal liability? Business insurance covers your business.

grandview (2006)
01-15-2013, 06:29 PM
You have 2 different things here. Normally you get a FIN so that identifies your company with the taxman and if your opening up a business account at the bank. Some guys do a DBA but dump all the money into their personal account and pay from there. I prefer to keep business/personal separate

Pietro
01-15-2013, 07:12 PM
Doesn't the LLC protect your private/personal liability? Business insurance covers your business.



BINGO! If you had an event that could ruin your company (like a death/serious accident from equip or whatever) your personal stuff can not be targeted by attorneys/people suing you. It would protect your home, personal savings/assets.

lawnkingforever
01-16-2013, 12:49 PM
BINGO! If you had an event that could ruin your company (like a death/serious accident from equip or whatever) your personal stuff can not be targeted by attorneys/people suing you. It would protect your home, personal savings/assets.

Not necessarily. Running a llc as a solo operation does not exclude the owner/operator from a lawsuit or liability. There has been other threads on this, so I will not get into it. People can believe whatever they want to, but I would have plenty of liability insurance if was a sole proprietor or llc.
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branchoutshrub
01-16-2013, 03:01 PM
Keep business and personal separate. Get a tax id #

Dugann
01-16-2013, 04:38 PM
I am a LLC as well and yes you need a Fed Tax Id, you just apply for it for to the IRS form SS-4.

I am a solo owner LLC. But me (myself) and my business are two seperate people in the eyes of the goverment and creditors. Remember that an LLC, inc, etc are like a new born baby and like when you went to buy your first care or get a loan you had no credit. Your business has no credit till you establish credit with your business. I would also recommend going and getting a DUNS number from Dun and Bradstreet this will help in that area too.

The advantage of a solo owner LLC is when I do my taxes at the end of the season both my two incomes me/business are one for TAX purposes only.

ELS Landscape
01-16-2013, 05:31 PM
I think the new rules now is not to get an EIN and to use the SSN unless you have employees.

LLC is great for solo and it is not a way to hide debt and skip out. It is a way to protect personal assets from business law suits. You often are required by lenders to personally guarantee loans.

If you mix business accounts with personal accounts as a matter of routine then a lawyer will break through the LLC shied.

Blades Lawn Maintenance
01-16-2013, 08:07 PM
So if you are a LLC how do you get paid? Like would you deposit all the income form the buisness into a buisness account and the from that account say pay your personal bills? Idont know..any ideas?

grandview (2006)
01-16-2013, 08:11 PM
So if you are a LLC how do you get paid? Like would you deposit all the income form the buisness into a buisness account and the from that account say pay your personal bills? Idont know..any ideas?

Couple of different ways,You can give yourself a pay check each week just like an employee and pay all taxes on it. Or take a draw ,then at the end of the year and your books are closed it will transfer to your personal taxes and taxes are due then. What ever you do write a company check to yourself and deposit it into your personal account then pay bills.

Blades Lawn Maintenance
01-16-2013, 08:18 PM
Couple of different ways,You can give yourself a pay check each week just like an employee and pay all taxes on it. Or take a draw ,then at the end of the year and your books are closed it will transfer to your personal taxes and taxes are due then. What ever you do write a company check to yourself and deposit it into your personal account then pay bills.

:confused: Well wouldn't that make you pay double the taxes? One for your buisness and then one for you??? Send me a pm about it

ELS Landscape
01-16-2013, 09:36 PM
Couple of different ways,You can give yourself a pay check each week just like an employee and pay all taxes on it. Or take a draw ,then at the end of the year and your books are closed it will transfer to your personal taxes and taxes are due then. What ever you do write a company check to yourself and deposit it into your personal account then pay bills.

Very close, as an LLC you have to elect how you want to be taxed. If as a C-Corp you can cut a check. If as a Sole then you take a draw.

The IRS knows LLC's exist but do not determine taxes. You have those two choice

ELS Landscape
01-16-2013, 09:37 PM
:confused: Well wouldn't that make you pay double the taxes? One for your business and then one for you??? Send me a pm about it



There is double taxation for self employed and corporations

grandview (2006)
01-16-2013, 09:43 PM
There is double taxation for self employed and corporations

As you said,I'm a corp so all profits are passed through to my personal income tax.

GreenLight
01-16-2013, 09:51 PM
:confused: Well wouldn't that make you pay double the taxes? One for your buisness and then one for you??? Send me a pm about it

Single owner llc's (and others for that matter) are capable of pass through taxation. This is also an avenue for sole props, but I personally like the LLC better for the protections it can offer on financial disasters that could occur. Yes there are limitations to this, but if you keep your LLC account separate from personal funds, the business can theoretically go bankrupt without taking you down with it. In all honesty it just offers you a bit more protection for your family if you were to ever find the business completely overextended and on the brink of bankruptcy. As for other liability issues, that's a slightly different story (say you were to do $100,000 worth of damage to a property by accident) you better have a good umbrella policy for your insurance.

Back to the point. Pass through taxation is a very nice perk for anyone in business and is one of the main reasons I decided to go into business for myself. Do some research on it with a simple google search and you will quickly understand some of the benefits.

Blades Lawn Maintenance
01-16-2013, 11:49 PM
How does pass through taxation work?

DA Quality Lawn & YS
01-16-2013, 11:53 PM
Not necessarily. Running a llc as a solo operation does not exclude the owner/operator from a lawsuit or liability. There has been other threads on this, so I will not get into it. People can believe whatever they want to, but I would have plenty of liability insurance if was a sole proprietor or llc.
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This post here is right on. Get a good bunch of GL coverage as a solo, and you are set to go. LLC does nothing for you albeit it isn't a bad thing to do, either. Stay out of debt which is common sense anyway.

Also, a lot of misinformation on here about taxation. OP, please consult some good literature to get the truth about biz taxation.

GreenLight
01-17-2013, 12:06 AM
This post here is right on. Get a good bunch of GL coverage as a solo, and you are set to go. LLC does nothing for you albeit it isn't a bad thing to do, either. Stay out of debt which is common sense anyway.

Also, a lot of misinformation on here about taxation. OP, please consult some good literature to get the truth about biz taxation.

I will just say I disagree with you on a few things. LLC is not a license to be a careless goofball who destroys other's properties and runs up bad credit, that much we agree on. General liability is a given for anyone in business as an LLC doesn't protect you from being sued when uninsured. That said, there are times when an LLC can protect you and most of it has to do with getting upside down with the company finances. If you had a major accident that disabled you and owed a lot of money on equipment and had a large open materials ticket on a job you just started, the banks and materials companies made those loans to the company and not to you. So there is some protection in these events that could same you your home and your personal finances. I do agree, get a consultant on these things and talk to them about your best option.

GreenLight
01-17-2013, 12:20 AM
How does pass through taxation work?

It's a long answer that has a lot of positive variables, but the brief answer is this.

In a single owner LLC with pass through taxation, the LLC never actually pays taxes unless you set it differently in the future. The single owner virtually becomes the llc and pays the taxes on his individual return (some extra paperwork,sched C, but nothing scary).

Without saying much more, as a business you have a lot more deductible items than you do as an individual. The business itself generally eats up a lot of money everyday in overhead and that overhead now sits in your write off bucket. Profits and losses are passed through to the single owner. In many cases after the single owner has paid himself, the LLC borrows money from the owner to pay it's own bills (pretty common practice). At this point the LLC is filing a loss and without being to complicated, this actually can really lessen your tax burden at the end of the year.

DA Quality Lawn & YS
01-17-2013, 03:15 PM
And I agree with you GL about LLC's advantage if debtors go after you.

Simple solution: don't take on biz debt. Solved.

wstrick1
01-24-2013, 02:16 AM
Yes you need the tax id my friend

ELS Landscape
01-25-2013, 01:14 PM
As you said,I'm a corp so all profits are passed through to my personal income tax.I know it is based on revenue and salary so it will be hard to compare situations but do you find that being taxed as a C Corp is helpful?

grandview (2006)
01-25-2013, 05:10 PM
I know it is based on revenue and salary so it will be hard to compare situations but do you find that being taxed as a C Corp is helpful?

Only corp tax I pay is 25.00 to NY.After all my profit and loss is done,the bottom figure goes onto my personal taxes and I pay tax on that.

ELS Landscape
01-27-2013, 06:17 PM
Only corp tax I pay is 25.00 to NY.After all my profit and loss is done,the bottom figure goes onto my personal taxes and I pay tax on that.

So in effect you pay yourself a fair wage which is taxed as regular income and the Profit paid as a bonus is capital gain which leaves nothing to be taxed at the corporate level.

XYZLawnPros
01-28-2013, 12:01 PM
Why on earth would you want to sign up voluntarily to the government or the tax man?????????????????

Just the same why would you voluntarily give them your income???????

TeamYardsale4 is getting warmer with his quote of DBA is best route for a solo operation right??

To the original poster, please become competent in your own affairs and READ and READ some more on how YOU would like to live your life.

When you see posts that state "Yes you need a tax id" please oh please dear lord think about the consequences of what could be the rest of your life by doing so.

grandview (2006)
01-28-2013, 06:08 PM
Why on earth would you want to sign up voluntarily to the government or the tax man?????????????????

Just the same why would you voluntarily give them your income???????

TeamYardsale4 is getting warmer with his quote of

To the original poster, please become competent in your own affairs and READ and READ some more on how YOU would like to live your life.

When you see posts that state "Yes you need a tax id" please oh please dear lord think about the consequences of what could be the rest of your life by doing so.



So you collect all money and pay no taxes,and yet you want all the advantages of what taxes pay for?I suppose your a "prepper" too.

ELS Landscape
01-28-2013, 10:55 PM
I know Right!