Pacun Posted January 5, 2014 Report Share Posted January 5, 2014 Currently I have a sole proprietorship named SOLOPERDEDOR and the efile number is under that sole proprietorship. I pay my friend for using her office and some of her equipment and internet access. I want to form an LLC and make her a 25% member. I want to register the LLC on Monday (Jan 6), but the ATX software under the LLC but I will not be able to get the efile number for this tax season. So I will be forced to continue using the old efile number but I will start putting the money I am charging on the LLC. I will apply for efile number under the LLC next week but it won't be ready for this tax season. Should I wait until the tax season is over and register the LLC at that time? So my taxes for 2014 will have Sch C with profits and the K1 will reflect losses. Quote Link to comment Share on other sites More sharing options...
Mr. Pencil Posted January 5, 2014 Report Share Posted January 5, 2014 I will not be able to get the efile number for this tax season. If you want to e-file as an LLC/partnership, you must go through the steps at http://www.irs.gov/Tax-Professionals/e-File-Providers-&-Partners/Become-an-Authorized-e-file-Provider. IRS says it can take up to 45 days after you open the account and submit fingerprints and so on. Why don't you as a sole proprietor contract with the new LLC/partnership to be the e-file provider? You will probably want to have further agreements for use of computers and so on, because it's a nuisance to transfer them in a short year. (As always, I strongly recommend you get legal advice in your own state before forming a new entity.) 1 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted January 5, 2014 Report Share Posted January 5, 2014 Is an EFIN transferable? No. Your EFIN is not transferable and neither is your password. Even if you transfer your business by sale, gift or other disposition, you may not transfer your EFIN. You must protect your EFINS, Electronic Transmitter Identification Numbers (ETINs) and passwords from unauthorized use. My associate did all the paper work in early December and is still waiting for his EFIN. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 5, 2014 Report Share Posted January 5, 2014 I know one tax shop where they are still using the Efin of one of the owners who has long since retired enjoying sunny Florida. The PTIN is obviously of the new owner and his 2 tax preparers. I wonder how many retiring ERO's actually inform the IRS to cancel it. Or does it cancel automatically if you have not e-filed 1 or 2 seasons? Quote Link to comment Share on other sites More sharing options...
Pacun Posted January 5, 2014 Author Report Share Posted January 5, 2014 My associate did all the paper work in early December and is still waiting for his EFIN. Based on this, I have no choice than to use my current EFIN and the new entity will report a short year and losses. It doesn't make any sense to register it now if I can wait until July. Quote Link to comment Share on other sites More sharing options...
jshtax Posted January 5, 2014 Report Share Posted January 5, 2014 I am unsure why you even have to do a schedule C. Who are the payments being made to? If not paid to you personally then why even bother with the schedule C. I don't believe the IRS tracks payments for services to EFIN's. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 5, 2014 Report Share Posted January 5, 2014 Good point! The bottom of 1040 has your PTIN and EIN (if you have one). Quote Link to comment Share on other sites More sharing options...
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