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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 09-30-2014, 11:42 AM
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Heidi Heidi is offline
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Default EIN-Tom Copeland, please

Hi Tom!

I had a business prior to starting my dc 3 years ago. That business was and LLC, with an EIN number. I had no employees, btw.

I closed out the LLC, but the EIN number is still attached to my SS # with the IRS.

My daycare name is different, and I use my social for taxes at the moment.

I am hiring an LTE for 6 weeks, so I need an EIN number for her tax withholding, right?

And, as long as I have that EIN number in use again, I will give that to my parents for daycare receipts.

1. Do my parents then have to write my checks to the business? My bank charges fees for business accounts, but not for personal. So, my current account is just under my own name.

2. How do I do a name-change with the IRS? I have been on their website, and am not clear if I even have to do anything.

3. Is there any point in changing my daycare to an LLC?

Thanks in advance!
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Old 09-30-2014, 02:08 PM
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AmyKidsCo AmyKidsCo is offline
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I'm not Tom, but I've looked into the same things.

1. No. I use my EIN but the parents write checks to me personally.

2. Don't know this one. I use the same EIN for my daycare and my online boutique. As far as I understand the EIN is assigned to you, not the business. (But I could be wrong...)

3. Tom says not to because so much of our own property is also used for the business. Tom says "First, since you are using part of your home for your business, the business portion is not protected by the LLC. This means that if your Time-Space percentage was 40%, then 40% of your home (and your furniture and other equipment) is business and would not be protected."
http://www.tomcopelandblog.com/2011/...mpany-llc.html

My online boutique is a LLC but my child care isn't.
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Old 09-30-2014, 02:21 PM
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AmyKidsCo AmyKidsCo is offline
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Weird - I thought I replied!

I'm not Tom Copeland, but I know some of these...

1. I use an EIN for my childcare and the parents still write checks to me personally.

2. No clue. I think EINs are assigned to you, not the business. I use the same one for my childcare and my online boutique.

3. Tom Copeland says not to set up a child care as an LLC: http://www.tomcopelandblog.com/2011/...mpany-llc.html
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Old 09-30-2014, 02:48 PM
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Blackcat31 Blackcat31 is offline
 
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Quote:
Originally Posted by AmyKidsCo View Post
Weird - I thought I replied!
You did..... for some reasons any time someone posts with a link to Tom, the post is moderated.... NO clue why, but you did reply..I just didn't notice the "needs moderation" flag.
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Old 10-02-2014, 12:44 PM
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TomCopeland TomCopeland is offline
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Default Llc

Quote:
Originally Posted by Heidi View Post
Hi Tom!

I had a business prior to starting my dc 3 years ago. That business was and LLC, with an EIN number. I had no employees, btw.

I closed out the LLC, but the EIN number is still attached to my SS # with the IRS.

My daycare name is different, and I use my social for taxes at the moment.

I am hiring an LTE for 6 weeks, so I need an EIN number for her tax withholding, right?

And, as long as I have that EIN number in use again, I will give that to my parents for daycare receipts.

1. Do my parents then have to write my checks to the business? My bank charges fees for business accounts, but not for personal. So, my current account is just under my own name.

2. How do I do a name-change with the IRS? I have been on their website, and am not clear if I even have to do anything.

3. Is there any point in changing my daycare to an LLC?

Thanks in advance!
Once you get an EIN, you can use it even if you have a new business. Have the parents write the check to you personally, to avoid paying extra bank fees. Some banks don't charge for business accounts, so you may want to check around.

You don't need to notify the IRS of a name change. They track you based on your EIN.

I don't recommend an LLC, unless you don't mind doing a lot of additional paperwork and have a lot of personal assets you are trying to protect.
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