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Help Change to LLC

Discussion in 'Business Operations' started by jose85, Dec 15, 2011.

  1. jose85

    jose85 LawnSite Member
    Messages: 214

    so i have a question should i change too LLC , i have to file my taxes with my income from my regular job, from my understanding if its LLC ,it can be file by it self? what are other benefits of having LLC , im Sole Proprietorships
    and which way it easier to get business credit, i had my federal tax number for 3 years, would it change once i switch to LLC thanks

    TJLANDS LawnSite Bronze Member
    Messages: 1,668

    If you change from a sole proprietor to an LLC you will need to change your fed ein.

    Besides a liability issue there is not much of a difference , or benefit
    especially if you do not have employees..

    But you will need to file two returns instead of one
  3. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Messages: 4,657

    Yea tj is not kidding about the tax returns. I have a s corp with a partner so each tax season both he and I have to file a fed tax return and a state tax return. Then the business has to file a fed tax return a state tax return and for some reason a second return to the state what I have no idea what its used for. So between the 2 of us we file 7 returns can you say ouch with the accountant since they are all long form.

    NEW CITY LAWN CARE LLC LawnSite Bronze Member
    Messages: 1,271

    The IRS doesn't have a classification for a single member LLC, they tax it as a sole prop, so if he wanted to create the LLC and get a EIN # he could file both his home and business taxes together in 1 return....
  5. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Messages: 9,228

    I agree, but how does he attach his LLC ID# and his personal soc. sec # on the same tax return form?

    TJLANDS LawnSite Bronze Member
    Messages: 1,668

    i am pretty sure every EIN needs to have a return filed, and I dont think they can be combined.

    NEW CITY LAWN CARE LLC LawnSite Bronze Member
    Messages: 1,271

    The business is filed on schedule C with your EIN and your SS is filed on form 1040 and YES a single member llc can file both household and business combined, I did it for years personally
    Posted via Mobile Device
  8. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Messages: 2,131

    a couple things. Most of your questions were answered above. If you have credit established under your company name and ein number you can still maintain the same credit with a new ein as long as the company name stays the same. when you file for credit use both ein numbers. I had to do that when I switched to an llc, basically they used my new win as the primary for the loan and my old ein number was used inplace of a personal gaurentee.

    Second thing . Do you have employees? If you do not have employees then a llc does not have offer any protection to you. If you get in an accident or mess us on someones property then you can be named personally in a law suit along with the company as co-defendants. If you and the company loose then you could be held personally liable for anything over what your gl covers (if your gl does covers you personally). Where LLC protects you is in the case of an employee causing the act that the company is sued over, such as the employee causing an auto accident. In that case the employee could be named as a co-defendant along with the company. In this case you are personally protected being a llc.

    NEW CITY LAWN CARE LLC LawnSite Bronze Member
    Messages: 1,271

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