Changing to LLC, do I need to get a new EFIN?

[jeff501]

I've been told conflicting stories from the local IRS office about the need to get a new EFIN when I form an LLC, currently I'm a sole proprietor. Anyone know If I need to apply for a new EFIN?

Thanks for everyone's assistance in advance with this matter.

[New York Enrolled Agent]

I've been told conflicting stories from the local IRS office about the need to get a new EFIN when I form an LLC, currently I'm a sole proprietor. Anyone know If I need to apply for a new EFIN?

Thanks for everyone's assistance in advance with this matter.

FAQ from the IRS

12.1 Small Business/Self-Employed/Other Business: Entities: Sole Proprietor, Partnership, Limited Liability Company/Partnership (LLC/LLP), Corporation, Subchapter S Corporation

I recently formed a limited liability company (LLC). The LLC has no employees. Do I need a separate Federal Tax ID number for the LLC?

No, you will not need a separate Federal Tax ID number for the LLC if you are the sole owner of the LLC and the LLC has no employees. If you are the sole owner of the LLC and the LLC has employees, you will need to get a separate Federal Tax ID number, if you choose to have the LLC report and pay employment taxes with respect to employees of the LLC. If you are not the sole owner of the LLC, you will need a separate Federal Tax ID number for the LLC. See Notice 99-6, 1999-1 CB 321.

[MLINDER42]

FAQ from the IRS

12.1 Small Business/Self-Employed/Other Business: Entities: Sole Proprietor, Partnership, Limited Liability Company/Partnership (LLC/LLP), Corporation, Subchapter S Corporation

I recently formed a limited liability company (LLC). The LLC has no employees. Do I need a separate Federal Tax ID number for the LLC?

No, you will not need a separate Federal Tax ID number for the LLC if you are the sole owner of the LLC and the LLC has no employees. If you are the sole owner of the LLC and the LLC has employees, you will need to get a separate Federal Tax ID number, if you choose to have the LLC report and pay employment taxes with respect to employees of the LLC. If you are not the sole owner of the LLC, you will need a separate Federal Tax ID number for the LLC. See Notice 99-6, 1999-1 CB 321.

He is asking about a EFIN not an EIN. What is the advantage of being an LLC?

[BOB W]

Aren't EFIN assigned to the preparer, not the business.

[erchess]

Efins

EFINS are assigned to the location. For example each office of a large national firm has its own EFIN. In the case of the large national firm it is the office manager who is the key person. If the office has sufficient problems then it loses its EFIN until a new manager is put in place. If I had two offices I would need two EFINS and if either had sufficient problems they would both lose their EFINs if I were the manager of both. If I had an employee running the office that had all the trouble perhaps only it would lose EFIN and only while that employee was in charge Since I am mobile and often transmit returns from the homes or offices of clients, the IRS decided that I could make use of one EFIN although I was cautioned that at any time the Service may instruct me to immediately cease transmitting from anywhere except my home office. None of that of course answers the question in OP.

I believe that he needs to refile F8633 to update things including the fact that he is now dba an LLC and possibly has a different EIN or an EIN for the first time but I do not know whether he will get a new EFIN or not. If he gets a new EFIN he will obviously use it and otherwise he will use his old one. The beauty of the situation is that he doesn't need to know in advance whether he will get a new EFIN and I am guessing that the relatively low level employee or even computer who processes the 8633 will know instantly what do do.

[S T]

Form 8633

I believe, all you need to do is complete a form 8633 and make the necessary changes to update your EFIN record

and if you are signed up for e-services I think you can do online.

http://www.dir.ca.gov/dlse/FAQ_Overtime.htm see instructions for items for
page 1 line 1 and sub items.

Sandy