Advice For Setting Things Up? [USA/Multiple EINs]

David2772 · Jun 7, 2016

Hello,

I'm based in the USA and am doing business with a USA based affiliate network. In accord with my method, I'm about to begin operating multiple accounts with this network -- each will need separate tax info. So my plan is to make separate EINs for each one. I'm hoping to eventually scale to about 10 accounts.

How will this end up going at the end of the year when I need to file taxes? Also, when this happens, will I be filing as a sole prop, or what..?

Are there any ways to structure things off shore in order to lower my effective tax rate?

alitarafdar · Jun 7, 2016

Since you'll be using 10 different EIN's, you'll most certainly need to use 10 different companies (LLC's, S-Corps, C-Corps, etc). This, of course, means that you'll be filing taxes for all those 10 entities as well.

You want to keep in mind that LLC's are pass-through entities, where the tax obligation is based on its 'owners.' In this case, if you create an LLC, it will be a single member LLC, assuming you're solo. Thus, taxes will depend on your personal tax rate. The other incorporations will be taxed separately, depending on which State you're filing your companies with.

If you want to maximize taxes, without the hassle of going offshore or any of that, I recommend States like Delaware, Nevada or even consider the State of New York (where the first 10 years, you have significant tax benefits, if you're an out of State resident).

Hope that gives a bit of clarity and helps.

David2772 · Jun 7, 2016

alitarafdar said:
Since you'll be using 10 different EIN's, you'll most certainly need to use 10 different companies (LLC's, S-Corps, C-Corps, etc). This, of course, means that you'll be filing taxes for all those 10 entities as well.

You want to keep in mind that LLC's are pass-through entities, where the tax obligation is based on its 'owners.' In this case, if you create an LLC, it will be a single member LLC, assuming you're solo. Thus, taxes will depend on your personal tax rate. The other incorporations will be taxed separately, depending on which State you're filing your companies with.

If you want to maximize taxes, without the hassle of going offshore or any of that, I recommend States like Delaware, Nevada or even consider the State of New York (where the first 10 years, you have significant tax benefits, if you're an out of State resident).

Hope that gives a bit of clarity and helps.

Will I need to file 10 different companies? That sounds expensive! Would it be possible to file all as sole props? Or are there LLCs where I can have multiple EINs within the same umbrella corp?

I'm actually a NY State resident already.

Thanks for your advice!

alitarafdar · Jun 7, 2016

As far as I know, using 10 different EIN's will require that you have 10 different entities. You can set up a master CORPORATION as the holding - where the rest are subsidiaries are LLC's. I.E.: You have CORP ABC as the primary corporation with one E.I.N and then the rest of the LLC's are registered where the CORP ABC will be the primary member of those LLC's and you as an individual can be part owner of those LLC's as well. Thus, you'll be able to do it cost effectively.

It's all a question of proper tax planning and curation. Also - consider that if you'll be registering for Adsense and some Affiliate networks, you can try and get some virtual office locations instead of P.O Boxes. Just some additional tips.

Feel free to PM me anytime with any additional questions or concerns.

Hope the response was helpful!

Advice For Setting Things Up? [USA/Multiple EINs]

David2772

Registered Member

alitarafdar

Newbie

David2772

Registered Member

alitarafdar

Newbie

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