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If you saw my last post my mommom and owner of the tax office passed away last week.
As I am preparing for EFIN and PTIN applications can someone enlighten me on the best way to set up the business? I have tried calling the IRS and can't get through the the business department.
The old business had an EIN number, but her EFIN number was under her social. The EFIN department I did talk to and they said I have to talk to the business department who I can't get through to. They said because the EFIN is under her social that I will need my own.
To apply for my own I need to know what kind of business structure/ EIN or ss# and sole proprietor.
What is the best way for me to know which to choose?
Should I be an LLC or Sole proprietor? How did you choose for your business?
Do you have employees or sub contractors?
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I'm sorry to hear of your grandmothers passing. You will need to get your own efin and PTIN number. You have not said if you have been doing tax returns before to be able to take over her clients. Wishing you good luck and success. Tax clients are going to be asking YOU what type of entity they should be and the differences/requirements/pros and cons of each you should be familiar with.
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A single member LLC is basically a sole proprietorship with a little more legal protection. But as I mentioned in your earlier post, you really need to get some decisions made so that you can apply for that EFIN ASAP.
Slava Ukraini!
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I have done taxes, but I always had my mommom if I needed her. I have also set up peoples businesses as LLC and got the EIN with the IRS and registered them with the state/sales tax.
I just think my mommom was a sole prop for the tax business.
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Single member LLC do I have to register with the state? Is there an annual report?
Yes, I am trying to figure out what to do so I can apply for the EFIN. The first set of questions is about how the business is set up (which it is not yet).
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My mommom never had employees and never did 940s and 941s. I am not sure if I am going to be needing more help where I want to have someone on payroll or not.
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"do I have to register with the state?"
State rules vary, you will have to research that for your state.
I am not sure if I am going to be needing more help where I want to have someone on payroll or not.
Assume you will. You can change your mind later.
Slava Ukraini!
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You seem to be overlooking the combination of getting an EIN and being a sole proprietor. You don't have to keep giving out your SSN and you would need that EIN if you get any employees, anyway. Read about SS-4.
Don't yell at us; we're volunteers
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I agree with IronMan. Forming An LLC may require a little more paperwork, and it may require an attorney, but I'm not sure about your state requirements concerning this. If you decide to be a sole proprietor, then you should consider errors and omissions insurance, which you should also consider if becoming any other kind of entity including LLC. You have a few more months before tax season so I think you should be okay my friend. Good luck.
