What are the tax documents to be filled for my new LLC?
Surprisingly, no matter where you are in the United States; there are IRS documents that are universal to you running a successful company. The first being your Taxpayer Identification Number/Employer Identification Number (EIN). You will also choose to fill out either the IRS form 8832 Entity Classification Number, and form 2553 Election by a Small Business Corporation. In part two of the series, I will go into detail for each IRS document. That is to say, if you aren’t comfortable with any part of this process; reach out to an advisor of your choice.
Getting your taxpayer identification number
Have you ever been to the County Fair, Disney or a private Party? The county, fair, Disney World or a private party would request a ticket or you would be kicked out. Certainly, with running a business you will need a taxpayer identification number to be in compliance with the Federal Government and participate in business activities. Consequently, after picking your LLC name and type in the previous step, you’ll need your Employee Identification Number (EIN) to eventually open a bank account and more. To illustrate, get your EIN on the IRS website without paying any attorney or private company fees; click here.
The IRS Form 8832 Entity Classification Election
For instance, whether you are building an e-commerce store or a beauty salon; getting the right tax status will set you up right for the future. If you are building your company as a sole proprietor; you can skip to IRS Form 2553 section. In conclusion, if you have several investors and want the corporation to be taxed separately then you would specify that on the form.
The IRS Form 2553 Election by a Small Business Corporation
This election is great for a corporation that wants its shareholders to be taxed for income made versus the corporation itself. Furthermore, this election can be tricky because the IRS determines how long you have to file. To sum it up, the S-corp status is to say, file this only after you’ve made the decision it is best for your corporation.
Forming your new LLC without expensive attorney fees series
The series created by Jean-Désir Fils is structured as seven separate blog posts. Each post will break down the steps needed to form your LLC without an expensive attorney fee. To clarify, any questions for your specific state will be added with links to your respective state in the future. Thus, the series will include a downloadable checklist that will ensure you remain on track to succeed no matter your level of business know how. Check out the remaining five posts in the series here: