Saturday, November 29, 2008

Disregard the past IRS rules LLC’s

There will be some reporting changes for single member/single owner LLC’s (also known as disregarded entities) in 2009. According to a recent email notice received from the IRS, LLC’s that are considered disregarded entities will have to report employment taxes in the name and EIN of the LLC instead of the single member/owner. The change makes IRS Notice 99-6 obsolete whereas a single member/owner had a choice to use the either the name or EIN of the owner of the LLC. The changes only affect the employment taxes and not income tax reporting for LLC’s. Small business LLC’s that are affected by this change may want to seek the assistance of their tax professional for details on applying for a new EIN.

Keeping Your Business N Synergy

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