IRS form SS-4 for a LLC Business.

[cwhitaker]

Hello everyone.


I recently formed a Limited Liability Company in Michigan. It consists of me and one other partner. All profits and losses are split down the middle 50/50.

Now I have a few questions while filing for an Employer Identification Number (EIN) via the IRS form SS-4.


Question 1
Line 9a. Type of entity.

http://cwhitaker.com/share/ss4questions/question1.jpg

As an LLC are we considered a Partnership or Corporation?

Question 2
Line 12. Closing month of accounting year.

http://cwhitaker.com/share/ss4questions/question2.jpg

Now would it be correct to fill out as "December" if i want the accounting year to start in January - end in December.

Question 3
Line 13. Highest number of employees expected in the next 12 months.

http://cwhitaker.com/share/ss4questions/question3.jpg

Now I don't expect to hire any one in the next 12 months. But if I did happen to hire an employee would this effect anything?

Also could any one link me to more information on Agricultural, Household, and Other employees.

Question 4
Line 14. Do you expect your employment tax liability to be $1,000 or less in a full calendar year.

http://cwhitaker.com/share/ss4questions/question4.jpg

Is this considered tax liability for employees only? or does it include tax liability from the partners as well?

Thank you for your help and advice.

[Fergal]

cwhitaker, you might find this IRS link (http://www.irs.gov/businesses/small/article/0,,id=99336,00.html) useful, it provides IRS info relevant to starting different types of business.

You can also find instructions for filling out the SS-4 here (http://search.irs.gov/web/query.html?col=allirs&charset=utf-8&qp=&qs=-Wct:"Internal+Revenue+Manual"&qc=&qm=0&rf=0&oq=&qt=SS-4&search.x=3&search.y=14).

Have you got an accountant to advise you on this or are you doing it all yourself?

Have you got a partnership agreement between you and your partner? Partnership agreements normally include details on the following items;



The share of the business that each of you will own
How you will split any profits
How you will deal with any losses should they arise
Each of your responisbilities and roles in the business
How you would both make and agree decisions
Pay you will take from the business
How you deal with a situation where one of you decides to leave the business
Arbitration or dispute resolution procedures

Agreeing a written partnership agreement at the outset can save a lot of trouble later on.

Good luck with it all and please keep us updated on how it is working out for you.

[Nazreen]

Hi cwhitaker. I did a search from IRS site given by Fergal and saw the specific page for Instructions for Form SS-4 (1/2009) (http://www.irs.gov/instructions/iss4/ch02.html).

I think that your LLC should be a partnership because corporations are usually bigger and have stockholders.


Line 12. Closing month of accounting year. Enter the last month of your accounting year or tax year. An accounting or tax year is usually 12 consecutive months, either a calendar year or a fiscal year (including a period of 52 or 53 weeks). A calendar year is 12 consecutive months ending on December 31. A fiscal year is either 12 consecutive months ending on the last day of any month other than December or a 52-53 week year. For more information on accounting periods, see Pub. 538.


Line 13. Highest number of employees expected in the next 12 months. Complete each box by entering the number (including zero (“-0-”)) of “Agricultural,” “Household,” or “Other” employees expected by the applicant in the next 12 months.


Line 14. Do you expect your employment tax liability to be $1,000 or less in a full calendar year? Check the appropriate box to indicate if you expect your annual tax liability to be $1,000 or less in a full calendar year. Generally, if you pay $4,000 or less in wages subject to social security and Medicare taxes and federal income tax withholding, you are likely to pay $1,000 or less in employment taxes.

For employers in the U.S. possessions, generally, if you pay $6,536 or less in wages subject to social security and Medicare taxes, you are likely to pay $1,000 or less in employment taxes.

For more information on employment taxes, see Pub. 15 (Circular E); or Pub. 51 (Circular A) if you have agricultural employees (farmworkers).

[pendelton]

First off, do it online and get it quicker. http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

I will only go over the screen that you need to take action on, on screens that I do not mention all you have to do is hit continue
Screen one makes it easy, just click the radio button for the Limitied Liability Company (LLC)
Hit Continue
The next screen asks how many members that you have and the state.
Hit Continue
The next screen is an inaction screen stating that you are considered a partnership, which you want, so ignore it and hit continue.
One the next screen select the radio button for Started a New Business
Hit continue
One this next scree you have two choices, select radio button for Individual
Hit Continue
The next page wants all your name, social security number, and for you to select one of the radio buttons in the lower area, you would choose the one for being an owner/member.
Hit Continue
On the next screen it wants the LLCs address, enter it in. Normally you want to use the mailing address and leave the lower radio button clicked to no.
Hit Continue
You may see a screen asking if you want to use the address you typed in or the IRSs database version of it, I always click to you the database version.
Hit Continue
The next screen wants to know the LLCs name, county and state of operation, State of filing, and the start month and year.
Hit Continue
The next screen asks about a few different things, to make life easier click the No radio button for all 5 of the questions. You can change things later if you change your mind, none of this is locked for ever. So click no to all 5.
Hit continue
On the next screen I hit Other, but you may have a different thing going on, so select the one that suits you. It isn't a big deal on which you select, as businesses change their operations all the time.
Hit Continue
On the next page I also click the radio button for Other and put in Internet Serivces in to the text box.
Hit Continue
On this page you select the radio button for Receive Online
Hit continue

You can now right click on and save your EIN file, getting it right then.

[aesusmd]

Hello Everyone,

I need some clarification. For example, if My company name is Advanced Technical LLC.

In SS-4 form . section 8.a (Type of Entity)
I have put a check mark on "Sole Proprietor" box.

Is this mean my Entity is Sole Proprietorship or is it Single Member LLC

So confusing with all the language..

Thanks in Advanced.

aesusmd

[Fergal]

Welcome to Business Advice Forum aesusmd and thanks for asking your business questions. Have you had a look through this IRS instructions page (http://www.irs.gov/instructions/iss4/ch02.html), it deals with both LLC's and Sole Proprietors.

I'm not based in the US, so unfortunately I'm not completely familiar with the exact registration requirements. I would suggest that you telephone your local IRS office and ask them any questions you have, you can find the relevant contact details on this IRS page - Contact Your Local IRS Office (http://www.irs.gov/localcontacts/index.html). They should be willing to help you to get everything right so that you can complete your registration.

Good luck with it. Once again, thanks for joining our business forum and I look forward to seeing more of your posts.

[aesusmd]

FYI,

When you filing your SS-4 for LLC entity, you have to check one of the box in section 8.a for entity type, or else it will default to partnership or corporates.

However,if you placed a check mark on the Sole Proprietor box, all that's means is that you are filing for Single Member LLC with Sole prorietor status when solely responsible for the income taxes with that EIN#, and you are NOT Sole Proprietorship. That's the different.

"Single Member LLC (sole proprietor)" is NOT "Sole Proprietorship".

Partnership LLC (when 2 or more members filed in LLC Entity).

[Fergal]

Thanks for the update aesusmd, glad to hear you got it sorted out. Please feel free to post any other business questions you have. We will do our best to help you. You can ask any type of business question from management issues to requests for ideas to promote your business.

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