Why was the new EIN necessary? I have an EIN now, but will be setting up the same structure...
Was previously sole proprietor....
Question About EIN Number
Discussion in 'Trucker Taxes and Truck Financing' started by Florida Playboy, Jul 30, 2016.
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Here is a good read on when a EIN is required and why, and the benefits of having one.
http://www.nolo.com/legal-encyclopedia/when-does-sole-proprietor-need-ein.html -
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I did. I had one as a Sole Proprietor gig, but when I changed over to an LLC with an S Corp tax structure, I had to get a new EIN.
EIN is a social security number for business. As my business was set up previously, it had an EIN. But that business was "closed" and became a new entity as an LLC. Just like when a person dies their SSN goes away. When a new person is born, they get a unique SSN. Business is exactly the same way. The old business "died" and my LLC was "born". Hence it needed its own EIN.
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