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Need some advice on LLC and EIN

Discussion in 'Business & Tax Advice' started by september, Sep 15, 2008.

  1. september

    september Newbie

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    I'm thinking of creating an LLC in Illinois where I'm located, but don't know if I should as for this year I'll only make around 10k online from CPA.
    What would the benefits be? If I create an LLC will I get an EIN with that or do I have to create it separately? Why should I have an EIN? Should I open a business bank account with my EIN?
    Any help would be greatly appreciated. :tee:
     
  2. caretaker2007

    caretaker2007 Power Member

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    Good god, don't do it here, this state sucks!!!

    You file for the EIN separately at the I R S site, easy to do. An EIN is required really, depending on the option selected an LLC pays taxes, if it is set up like a partnership it still has to report the partners earnings, and you and your business are nothing but numbers.

    Banks also require and EIN to show that the business is legal with the gov't before they will open an account.

    You should open an account under the business name, to show a separation between you and the business.
     
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  3. goawayplease

    goawayplease Regular Member

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    Benefits depends on the rules of your state, and how you form the LLC with the Feds. Pass through taxation and corporate shield are two benefits though, not to mention the ability to open accounts under the business name.

    The EIN comes from the IRS and can be filed online for free after you file the LLC Paperwork.
     
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  4. GreenGoblin

    GreenGoblin BANNED BANNED

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    I have a LLC... I don't know about yah state but mines sucked. I would wait until u move into another tax bracket so u can really enjoy it, currently in florida its 15% and that sucks major azz
     
  5. september

    september Newbie

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    What's so bad about an LLC in Illinois? How can I open one in another state, which state would be best?
    Thanks for your replies!
     
  6. Nixte

    Nixte Regular Member

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    Adding to caretaker2007 and goawayplease, I would say that you don't need an LLC right now. The only reason why you would like an LLC at this moment (earning less then $50,000/year) is for personal protection.

    If you only want an EIN to keep your business and private accounts separate (you also might not want to give every CPA / affiliate company your SS Number) then you could also opt for an DBA, which is less expensive.

    The BlackINk project released a pdf that shows some advantages / disadvantages... and instead of taking about it, I just have attached it here:

    Download

    Personally, I would start my business in NV. Has some major advantages if you earn some money

    Hope this helps ;)
     

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  7. caretaker2007

    caretaker2007 Power Member

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    The first year for an LLC here is $810.00, which is stupid, but IL is a greedy ass state. That is why I went to Uptownbulker for my corporation.
     
  8. sinewave

    sinewave Senior Member Premium Member

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    NY is worse, so I incorporated in Delaware some years ago. If I were looking to get inc'd now I'd most likely go through Uptown too.
     
  9. CyberDilemma

    CyberDilemma Regular Member

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  10. Uptownbulker

    Uptownbulker BANNED BANNED

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    An EIN obtained for a DBA ties directly to your Social Security Number.

    An EIN obtained for a corporation does not; it ties to the corporation.

    If you are concerned about anonymity in your online dealings, for the most part an LLC is not the way to go.

    With a corporation you may coneal from the public who is actually doing the work for the corporation.

    People make a much bigger deal out of personal liability than it realy is. In the internet world, the primary reasons for both corporationas and LLCs are the tax advantages and the superior identity protection of the corporation.
     
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