I have just started my own business and have received notification that I have a Federal Tax Lien filed against me for my person taxes. Is my business considered property or an asset that the IRS can attach to satisfy the lien? My business is an LLC.
2007-03-24 18:39:43 · 2 answers · asked by Debbie A 1 in Business & Finance ➔ Taxes ➔ United States
That is not correct. You can in fact avoid your business being affected by the tax lien by getting a separate EIN number for your business. Then setup your business with it's own bank accounts, investment account, etc. under that EIN number and the IRS will never touch your business. You just have to keep a distinct wall between you and the business, i.e. do not pay for groceries from the business account. This is called protecting your corporate veil. A little harder with an LLC but it is possible. Consider changing the LLC to a C Corp.
2007-03-25 19:21:48 · answer #1 · answered by Pro Home Buyer 2 · 0⤊ 0⤋
Yes, of course it is. You can't transfer assets into a business you own and escape a tax lien.
2007-03-24 19:45:12 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋