Separating existing LLC and new venture

[pauljr]

Hi all! Got here from a quick Google search on "using existing EIN for new business" and it appears to be a warm and helpful place so here I am. Also noted that one of the forum members--that seemed to know a bunch about what I have to ask--is in the same state as I, so maybe I can give him some business as I need an accountant. On to the question...

I am a sole-proprietor, operating under an LLC business entity. I prepare my taxes as an individual but attach a Schedule using my business name and EIN.

Recently, I've started up a new income generating endeavor (Google ads on my personal youtube channel) but has nothing to do with my current business, and I would like to keep it that way...I think. So I'm getting checks from Google made out to me, and I'm attempting to take this to the next level with some affiliate advertising and I need to provide my SS# or EIN.

So my question is, can I use my existing EIN, even though it seems like it's associated with my LLC, or should I get a different one? I don't really have a new business name to use since everything is just being done with my real name... so confusing.

Anyway, would appreciate some guidance and I am happy to reciprocate by offering help with any IT questions.

Thanks!
Paul

[vangogh]

Welcome to the forum Paul. I'm a sole proprietor and not an LLC, but I do have revenue from several sources, including Google AdSense and affiliate sales. In my case I just include all those different items as part of my income. I'm still out forms as an individual except my income isn't shown on W2s, but through the Schedule C. I use both my SS# and EIN when you consider all of my forms, but I think with most it's one or the other.

I'm not entirely sure how an LLC files, but I' guessing you would be filing some forms specifically for the business and some specifically for yourself as an individual. The EIN likely goes on all the business forms and your SS# likely goes on all the personal. I would also think the money you want to keep outside the LLC becomes part of your individual income and is added to whatever income you get from the LLC.

Keep in mind I'm not an accountant or an LLC so the above is more hunch than actual knowledge. Mostly I wanted to welcome you and reply so your question becomes more visible to those who will be able to provide a better answer.

[pauljr]

Thanks! I suppose I'm going to have to hire an accountant to sort it all out. The code is just too confusing to attempt to decipher.

Cheers!
Paul

[Spider]

Welcome aboard, Paul. No advice on the tax angle but welcome, anyway.

[vangogh]

It wasn't too hard to figure out, but you probably can't go wrong hiring an accountant to take care of it. That's what they're there for after all.

[Nomad]

Hi Paul,

(Remember, if you use an accountant, it should be at least partially tax deductible to the business! )

Not sure if I'm answering the question exactly as you are asking it, but you can get an EIN even if you don't have an LLC and operate as a sole prop. That way you can keep the LLC income separate from the sole prop. income of the affiliate business income. This might be a good thing to do just from the standpoint of not having to give affiliate/ad websites your SSN. It's a good measure to help protect yourself from identity theft. You can apply for one online at the irs.gov site. Hope that helps...

[Spider]

This subject of having more than one EIN has been discussed on this forum and I think the outcome (with lawyer and accountant input) was that one can only have one EIN, not multiple EINs. I may be mistaken, so search the forum for that other discussion.

[Nomad]

Like anything else... it depends. For example, as a sole proprietor, you can have an EIN, rather than use your SSN. As an entity (I have understood this to be multiple member/owner... you should check to see if a single memeber LLC applies)-- you can have multiple EINs for various separate businesses (DBAs) that you might operate under an larger entity. This might facilitate keeping separate track of revenue, employees, etc. It may also help with opening separate bank accounts, etc. under the differnet DBAs. As always, utilizing a competent accountant and attorney are important if this is a road you have not tred before. (I am neither, so I humbly submit this as my opinion-- which content should be verified before making your own decision!)

[Alesha]

In my past business and accounting experience, if you want to be a separate entity and do business separately then I would suggest getting a new and unique EIN.