I'll weigh in on this one a bit. If you have been running as a Sole Prop and have clients that you do business with annually exceeding $600 that business is suppose to provide you with a 1099 at the end of the year. The question becomes, are they using your Social Security Number (SSN) on the 1099 or are they using an Employer ID (EID) that you obtained from the IRS.
If they are using your SSN and they now have to change to an EID that may require more paperwork for them on a one time basis to change the numbers. Additionally however, if for some reason you are using your SSN and your client is not providing you a 1099 each year as they should (yes there are business out there that do that) changing to an EID may make it more difficult for them to avoid giving you a 1099 annually. Just a thought, Jeff On Feb 10, 2010, at 5:07 PM, [email protected] wrote: > ooh good point about the impact on other clients. If it makes things a > lot more complicated for them it's really a no-go. I will > take this into account. > > thanks! > > Rob > > > > > On Feb 10, 4:27 pm, Jan Triplett <[email protected]> wrote: >> I know we are beating up on this issue that we have already discussed >> in detail. >> >> I just have to ask if you have considered the administrative and tax >> implications of having an LLC. It has an impact on your other clients >> as well since you will have to bring them up to speed. They may have >> to change their records, how you are reimbursed and the documents they >> send you — assuming you have been a sole proprietor. They may not be >> too happy about this. Creating more paperwork seldom makes people your >> friend. >> >> You will have to change your banking documents also - checks, etc. - >> at least usually you do. >> >> If you have to go to court, there is not as much case law to protect >> you as there is in other legal formations. You have other >> responsibilities to protect your right to call yourself an LLC >> depending on which election you take. Courts have been known to pierce >> the corporate veil of LLCs just as they have with corporations. >> >> I promise I will not say another word. >> >> This is just not something to enter into lightly. >> >> -- Here's to your success! >> >> Jan Triplett >> COO Business Success Center >> City of Austin Certified Green Business >> Twitter >> Linkedinhttp://ownersview.comhttp://runitright.biz >> >> On Feb 10, 2010, at 4:07 PM, [email protected] wrote: >> >>> I am working with a large client who can only make payments to an LLC. >>> It's not a legal >>> requirement, it's *their* requirement. I have no idea why. >> >>> That's the motivation. Not to get paid faster, liability, etc. If it's >>> easy >>> to do and not much of a headache, I don't have an issue doing it. >> >>> On Feb 10, 2:28 pm, Art Thompson <[email protected]> wrote: >>>> There's no legal requirement to only do business with corporate >>>> entities, >>>> it's usually something that comes from the accounting dept. Logical >>>> Things >>>> operates as an S-Corp and gets paid REAL FAST (within 30 days or >>>> less with >>>> the majority of my clients). Basically, it's less paperwork for >>>> them when >>>> you're just another vendor as opposed to a freelancer, since they >>>> potentially need to report how much they paid you, etc.. >> >>>> Oops, I'm contributing to the beating of this topic again! >> >>>> Art Thompson, Jr. >>>> Logical Things - Web, Design & Marketing Solutions >>>> 917-609-1158 [m] >>>> 512-692-9865 [w]www.LogicalThings.com >>>> twitter.com/LogicalThingswww.linkedin.com/in/LogicalThings >> >>>> On Wed, Feb 10, 2010 at 2:09 PM, [email protected] < >> >>>> [email protected]> wrote: >>>>> For some bigger clients, it might be a legal requirement. Not sure >>>>> 'zactly why, but it *does* happen. >> >>>>> On Feb 10, 12:48 pm, Aaron Ortega <[email protected]> wrote: >>>>>> Like a legitimacy thing? >> >>>>>> Sent from my iPhone >> >>>>>> On Feb 10, 2010, at 12:46 PM, "[email protected]" < >>>>> [email protected] >> >>>>>> > wrote: >>>>>>> The reason is that some clients need it to *pay* you. Strange, I >>>>>>> know. >> >>>>>>> On Feb 10, 10:02 am, Jan Triplett <[email protected]> wrote: >>>>>>>> Why are you doing this? The reason I asked is that you can >>>>>>>> always >>>>>>>> move up the legal food chain moving back down is tough. There >>>>>>>> are a >>>>>>>> lot of reasons not to do this. I am not a lawyer nor to I >>>>>>>> pretend to >>>>>>>> be on on TV or elsewhere but my experience with those who >>>>>>>> elected LLC >>>>>>>> when not necessary is a mixed bag. >> >>>>>>>> Just a thought worth considering. >> >>>>>>>> -- Here's to your success! >> >>>>>>>> Jan Triplett >>>>>>>> COO Business Success Center >>>>>>>> City of Austin Certified Green Business >>>>>>>> Twitter >>>>>>>> Linkedinhttp://ownersview.comhttp://runitright.biz >> >>>>>>>> On Feb 10, 2010, at 8:45 AM, [email protected] wrote: >> >>>>>>>>> I know some of you out there have probably done the same. Any >>>>>>>>> advice? >>>>>>>>> Would love to hear! >> >>>>>>>>> Thanks, >> >>>>>>>>> Rob >> >>>>>>>>> -- >>>>>>>>> Our Web site:http://www.RefreshAustin.org/ >> >>>>>>>>> You received this message because you are subscribed to the >>>>>>>>> Google >>>>>>>>> Groups "Refresh Austin" group. >> >>>>>>>>> [ Posting ] >>>>>>>>> To post to this group, send email to [email protected] >>>>>>>>> Job-related postings should followhttp://tr.im/ >>>>>>>>> refreshaustinjobspolicy >>>>>>>>> We do not accept job posts from recruiters. >> >>>>>>>>> [ Unsubscribe ] >>>>>>>>> To unsubscribe from this group, send email to >>>>> [email protected]<refresh-austin%[email protected] >> >>>>>>>>> [ More Info ] >>>>>>>>> For more options, visit this group athttp://groups.google.com/ >>>>>>>>> group/Refresh-Austin >> >>>>>>> -- >>>>>>> Our Web site:http://www.RefreshAustin.org/ >> >>>>>>> You received this message because you are subscribed to the Google >>>>>>> Groups "Refresh Austin" group. >> >>>>>>> [ Posting ] >>>>>>> To post to this group, send email to [email protected] >>>>>>> Job-related postings should followhttp://tr.im/ >>>>>>> refreshaustinjobspolicy >>>>>>> We do not accept job posts from recruiters. >> >>>>>>> [ Unsubscribe ] >>>>>>> To unsubscribe from this group, send email to >>>>> [email protected]<refresh-austin%[email protected] >> >>>>>>> [ More Info ] >>>>>>> For more options, visit this group athttp:// >>>>> groups.google.com/group/Refresh-Austin >> >>>>> -- >>>>> Our Web site:http://www.RefreshAustin.org/ >> >>>>> You received this message because you are subscribed to the Google >>>>> Groups >>>>> "Refresh Austin" group. >> >>>>> [ Posting ] >>>>> To post to this group, send email to [email protected] >>>>> Job-related postings should followhttp://tr.im/refreshaustinjobspolicy >>>>> We do not accept job posts from recruiters. >> >>>>> [ Unsubscribe ] >>>>> To unsubscribe from this group, send email to >>>>> [email protected]<refresh-austin%[email protected] >> >>>>> [ More Info ] >>>>> For more options, visit this group at >>>>> http://groups.google.com/group/Refresh-Austin >> >>> -- >>> Our Web site:http://www.RefreshAustin.org/ >> >>> You received this message because you are subscribed to the Google >>> Groups "Refresh Austin" group. >> >>> [ Posting ] >>> To post to this group, send email to [email protected] >>> Job-related postings should followhttp://tr.im/ >>> refreshaustinjobspolicy >>> We do not accept job posts from recruiters. >> >>> [ Unsubscribe ] >>> To unsubscribe from this group, send email to >>> [email protected] >> >>> [ More Info ] >>> For more options, visit this group >>> athttp://groups.google.com/group/Refresh-Austin > > -- > Our Web site: http://www.RefreshAustin.org/ > > You received this message because you are subscribed to the Google Groups > "Refresh Austin" group. > > [ Posting ] > To post to this group, send email to [email protected] > Job-related postings should follow http://tr.im/refreshaustinjobspolicy > We do not accept job posts from recruiters. > > [ Unsubscribe ] > To unsubscribe from this group, send email to > [email protected] > > [ More Info ] > For more options, visit this group at > http://groups.google.com/group/Refresh-Austin -- Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin
