So, I finally incorporated and got a new EIN...

transistor

transistor

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Sep 30, 2007
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Looking for some advice from people that have done this before.

Will I have to create new accounts at all the places that pay me or can I just update my information? I'd rather just update the information, because I have accounts with a couple dozen companies. If I do just update my information, will they send me a W-2 at the end of the year for each of my EINs?
 


I just did this as well. I went ahead and updated all of the billing information for all of the accounts. At the end of the year they'll send you a separate 1099 for each SSN or EIN you've used over the year. I formed an LLC and since I'm the only employee, I'm considered a "disregarded entity" for tax purposes, so I can continue to use my SSN for tax purposes and it would be treated the same as if I changed over and used my EIN.

The EIN will let you get a corporate bank account and local business license. I'm still trying to learn the ins and outs of how I can make the LLC benefit me tax wise at the end of the year.
 
Thanks for the info. I meant 1099, not W-2, haha.

I went with an s-corp at the advice of my CPA. He said I could save a lot since I wouldn't have to pay the self-employment tax on my dividends.
 
another question. I guess right now, my corporation is considered a c-corp and I have to submit form 2553 to elect to be an s-corp. if approved, do i have to wait until the beginning of the next year to be considered an s-corp? or will it be retroactive from the point in which I incorporated?

this is going to be an accounting nightmare
 
nevermind, i should have read the form. i guess for the first year, i'll have a short tax year.
 
efeezy said:
At the end of the year they'll send you a separate 1099 for each SSN or EIN you've used over the year. I formed an LLC and since I'm the only employee, I'm considered a "disregarded entity" for tax purposes, so I can continue to use my SSN for tax purposes and it would be treated the same as if I changed over and used my EIN.
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Thx for the info, I just recently incorporated as well (LLC), still trying to figure a lot of this out.
 
you can just update all your info. But make sure and get a good cpa to do your taxes, next year. This can get kind of weird when 1/2 the year is personal and 1/2 in through your business.
I recently got a letter from the irs about how i did mine last year. My tax guy says theres nothing to worry about, but im not totally sure i believe him.
 
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