Legal Question in Business Law in New York

Re: putting LLC status over sole proprietership

Answering in order:

i have a soleproprieter business for 5 years an dwold like to make it a single owner LLC. i have a employer indent number. 1) could i use this?

No, you cannot use the EIN that you have for your DBA for a new LLC (or for any other new entity).

2) would the bank where i have my operating account let me then just add LLC to the name on account.

Possibly. This is a matter of bank policy. Talk with your bank. They will need the new EIN whether or not you have a new account with them.

3) how would i handle the state i have the same number with them for payroll.

When you form an LLC, you are essentially making a new person. That new person will now be the party responsible for payroll taxes. The Dept. of Tax & Finance deals with this all the time and can actually be reasonably helpful with helping you switch payroll (and all other tax matters) from your DBA to your new LLC. However, because of the new entity being the responsible party, you will start with all new state and federal tax accounts. Talk with your accountant for any help you need with this.

4)how much do you charge to form the LLC.

For reasons involving attorneys' professional responsibility (we can't price-fix, according to the US Supreme Court) I cannot answer this question online. Please contact my office offline to inquire.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Re: putting LLC status over sole proprietership

You need to file a Certificate of Formation with the Commercial Recording Office. This information is available at the appropriate Internet web site for the State you want to form it in, NJ or NY, or contact me and I can assist you for a nominal fee. As a one-person LLC you are still considered a sole proprietor for income tax reporting purposes (you just file a Schedule "C" to your personal tax return). You need an ID number if you have employees, otherwise you use your SS#. Since you have an ID#, you must advise IRS that you are now using it for the new LLC (a simple letter after you form the LLC should do it). This is a responce to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship.

Re: putting LLC status over sole proprietership

You have to form a limited liabity company consistent with State law.

The fees depend on what is involved.