DancingQueen 06:49 AM 10-21-2010
I am asked
Originally Posted by :
What type of legal structure is applying for an EIN?
Before applying for an EIN you should have already determined what type of legal structure, business, or type of organization is being established.
Choose the type you are applying for. If you don't see your type, select "View Additional Types."
Sole Proprietor
Includes individuals who are in business for themselves and household employers.
Partnerships
Includes partnerships and joint ventures.
Corporations
Includes S corporations, personal service corporations, real estate investment
trusts (REIT), regulated investment conduits (RIC), and settlement funds.
Limited Liability Company (LLC)
A limited liability company (LLC) is a structure allowed by state statute and is formed by filing articles of organization with the state.
Estate
An estate is a legal entity created as a result of a person's death.
Trusts
All types of trusts including conservatorships, custodianships, guardianships, irrevocable trusts, revocable trusts, and receiverships.
I figured I wanted to go with SOLE
but then it says..
Originally Posted by :
What it is...
A sole proprietorship is a business owned by one individual.
A sole proprietor can be a self-employed individual or an independent contractor.
All business income and expenses are reported on the individual's federal income tax return.
A sole proprietor may or may not have employees.
IMPORTANT: A sole proprietor may have only one EIN, regardless of the number of businesses you own or operate. If you already have an EIN, you must use that number for all of your sole proprietor businesses.
What it is not...
The business cannot be incorporated or registered with the state as a limited liability company (LLC).
so does this mean if I go with SOLE I can not choose to become LLC???
legomom922 07:03 AM 10-21-2010
I did mine as sole because I have no desire to do a LLC...
Crystal 07:06 AM 10-21-2010
You should apply as sole. You can change it later, after you have become a LLC.
Curious, why do you want to go LLC? I think that would be more for a center-based program with several employees and a big risk for loss that you do not want to effect your personal assets.
DancingQueen 09:03 AM 10-21-2010
I haven't looked into LLC enough to make a call on it to be honest - I just don't want to rule it out entirely. But knowing that I can change it later if I want makes sense.
Unregistered 01:29 PM 08-10-2011
Me and my sisters are going into business. I am more of the Business (financial) side and my sisters has the credentials to actually operate the daycare. When applying for the EIN should we do partnership or sole?