A Tax Change For Single-Member LLCs
By Elizabeth T. Russell • Nov 26th, 2008 • Category: Business Law, Newest Post, Tax LawFor federal tax purposes, an LLC with one owner is referred to as an entity that is not separate from its owner (a “disregarded entity”) unless an election is made for it to be treated as a corporation.
An upcoming change affects how single-member LLCs will be required to pay employment taxes.
For wages paid before Jan. 1, 2009, disregarded entities choose how they want to file and pay their employment taxes: they may use either the name and EIN (Employer Identification Number) assigned to the LLC or the name and EIN of the single member owner.
For wages paid on or after January 1, 2009, employment taxes must be reported and paid in the name and EIN of the LLC.
For more information: Disregarded Entities for Purposes of Employment Tax
And of course this blog does not constitute legal or tax advice, so please consult your tax professional.
Elizabeth T. Russell is is a solo practitioner. Russell Law helps businesses protect their most important assets by focusing on intellectual property issues, specifically copyright, trademark and internet law. Elizabeth also enjoys a vibrant arts and entertainment law practice.
You can contact Elizabeth at:
Phone: (608) 833-1555
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Website: www.erklaw.com
Address: 402 Gammon Place, Suite 270, Madison, WI 53719
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