Reminder - Single Member LLCs

Under the disregarded entity rules, certain single-owner limited liability companies (LLCs) are disregarded as entities separate from their owners for tax purposes.  As a result, the disregarded entity is ignored and its property and activities are treated as those of the owner of the entity.  In the past, single-owner LLCs with employees could file their employment tax obligations using their individual tax ID number or under the ID number obtained for the LLC’s employment reporting obligations.

Effective for wages paid after January 1, 2009, new IRS regulations no longer allow the single-owner LLC to use their individual ID number for payroll reporting.  Instead, single-owner LLCs must obtain a separate tax ID number for payroll tax reporting obligations.

If you are the owner of a single-member LLC and have been using your own individual ID number for payroll reporting and tax purposes, call this office immediately to set up your LLC payroll reporting with its own ID number.

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