Need Important information on the LLC?

Question

I have formed a LLC on december 16th, 2006 and have few questions and it would be really great if experts can answer please.

1. The LLC has just one owner and its not hiring anybody for some period of time. It says in the instructions of the form SS-4 that we don't need to file a EIN number if its a single owner LLC. the owner's personal SSN/EIN can be used for the tax filing purposes. Is that true?

2. The LLC is formed on december 16th,2006. When is the first year tax due?

3. What is the LLC-12 form?

4. LLC-1 (articles of organization) has been filed with state of california. Do i need any other form as well to complete the filing of LLC?

thanx,
sam

Answer 1

1. Yes, it is true that you don't need an EIN. But it is best that you apply for one. One of the main reason people form LLC is to sheld personal asset from any potential liability. So why have your personal ID be used for the business. You also need EIN if you are purchasing goods for resell and want to avoid paying sales tax. The process of getting EIN is extremely simple and fast. You can even apply online. Go to http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

2. Some companies may decide to have different fiscal year than the IRS. For most people it is the same. If you haven't decide it yet, it is easier to file at the same time as your personal income tax.

3. I've never heard of LLC-12 form. Maybe someone else can help with that one.

4. I believe that's all you need: register LLC with your state and a tax ID with federal (either EIN or your social security number).

IRS Publication 3402 http://www.irs.gov/pub/irs-pdf/p3402.pdf has all the information you need about taxes and LLC.

Best wishes.

Answer 2

LLC-12 is a secretary of state form for filing officer and manager information. http://www.ss.ca.gov/business/llc/forms/llc-12.pdf
Even if your LLC is disregarded for federal INCOME tax purposes, it still has to worry about employment and excise taxes for which it can potentially be liable. Also, even if the IRS treats it as disregarded, the state of organization will probably require an annual return and payment of a minimum fee unless you are in one of those few non-tax states.