If you are incorporated (LLC, S-Corp, C-Corp...) then your client is not required to give you a 1099. So it's actually less paperwork for them.
Greg On Thu, Feb 11, 2010 at 3:42 PM, Jeff Bernier <[email protected]> wrote: > 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 >> >> >> >>>>>>>>> -- >> >>>>>>>>> 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]> >> <refresh-austin%[email protected]<refresh-austin%[email protected]> >> >> >> >>>>>>>>> [ More Info ] >> >>>>>>>>> For more options, visit this group athttp://groups.google.com/ >> >>>>>>>>> group/Refresh-Austin >> >> >> >>>>>>> -- >> >>>>>>> Our Web 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>>>>> 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]> >> <refresh-austin%[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]<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 follow http://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 follow http://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 >> > > > > -- > Larry Kubin > > -- > 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]<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. 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