Yes, sorry, EIN not EID :)

On Feb 11, 2010, at 1:14 PM, Larry Kubin wrote:

> The last poster probably means EIN (Employer Identification Number), not EID 
> (which is something that the University of Texas uses).
> 
> - Larry
> 
> On Thu, Feb 11, 2010 at 1:05 PM, Jeff Bernier <[email protected]> wrote:
> 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
> >>
> >>>>>>>>> --
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> Larry Kubin
> 
> -- 
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