Page 2 of 2 FirstFirst 12
Results 11 to 15 of 15

Thread: Multiple Sole Proprietorships, limited to one EIN

  1. #11
    Mr. Tax Man
    Array
    Join Date
    Aug 2008
    Location
    Rhode Island
    Posts
    1,329

    Default

    The problem you are having with consolidation. While you run two different business names, you -- John Q. Public, are still the employer. For payroll purposes, YOU must consolidate.

    What you may be better doing is creating a "third" company in PeachTree for payroll, run them all in that file. Create two checking accounts for each business. Run payrolls together, and print to the respective checks for each business. Your account will be negative, but you can adjust this by offsetting it with an entry to equity--business A, equity--business B. You'll also have the net figures to enter into your individual company files. Is it a perfect way? No, but it meets the reporting objectives. It's a consideration, and it may not be totally convenient. But you seem quite determined, regardless of alternatives to make it work that you're "right" that there should be allowed to be multiple EIN's per individual. Good luck, it will be like arguing that an individual should be entitled to more than one SSN. It will fall on deaf ears.

    While you do keep on reiterating the small nature of each of these businesses, to have 12 employees doesn't give the impression of a very tiny enterprise. I do think an S-Corp could be a beneficial entity. Perhaps just incorporating ONE entity and keeping the other a sole proprietorship? Just an option. The specifics would need to be discussed with a tax professional who knows your situation and could assist you in determining the right entity based on your needs.
    Small Business CPA
    "A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."

  2. #12
    Mr. Tax Man
    Array
    Join Date
    Aug 2008
    Location
    Rhode Island
    Posts
    1,329

    Default

    Quote Originally Posted by D Axline View Post
    I also owned a Corporation and know that the processing requirements, record keeping and some costs, were not prohibitive, but added additional time and paperwork to our operation. As I'm certain you are aware, in a "small business", time is extremely expensive.
    Are you saying that you're not doing this with your current businesses? Because you should. OK, there are some additional formalities, but many states allow for shareholders to act outside a meeting if they all agree by resolution. So create a resolution and get shareholders to agree to it. If you're the only shareholder, that makes it quite easy. Put it in a nice folder, and you're good to go for a year.
    Small Business CPA
    "A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."

  3. #13

    Default

    Thank you Evan...

    I hate to sound like a bull dog on the subject. I do appreciate your comments and suggestions. This is BY FAR the best discussion I have had on the situation.

    I'm certain you are correct about "deaf ears" and any changes in Federal Regulations. Your suggestion to research the S-Corp is appreciated. I will work on this with our accountants in the following weeks.

    If nothing else those following these notes, that have soleproprietorships, will have a little insight into some of the hardships they will face if they start more than one company. I think the greatest shock to us came with the handling of the Government assistance programs, following the Cedar Rapids Floods in 2008. Your explanation clarifies the position the government takes.

    Thank you again Evan.

  4. #14
    Mr. Tax Man
    Array
    Join Date
    Aug 2008
    Location
    Rhode Island
    Posts
    1,329

    Default

    Best of luck with your business ventures. The 2008 floods were very devastating to your area, and I'm sure the government's response to your inquiries presented an even bigger headache.

    In any event, let us know what ends up happening! And welcome aboard to SBF.
    Small Business CPA
    "A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."

  5. #15

    Default Just want to help

    Sir,

    Have you tried having your payroll handled by only one of the companies and then have the other reimburse for payments? That way only one company is burdened with reporting aspect of your business.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •