In another forum (NJ Law), a person posted that a company wants him to start doing some part-time consulting work for them (it's a company where he used to work, and he is now unemployed). They also said they require that he set up an LLC to receive the payments. So, he set up a single-member LLC online in New Jersey. Now he's wondering if he must, or should, have a federal tax ID number for the LLC. I'm thinking "yes" he should, but I am not an accountant or bookkeeper. I told him I'd pose the question here and that I will pass on any answers. Thanks.
LLC and tax ID number
Sep 17, 2006
3 Replies
I think it is pretty crappy what they are doing. Since he is already in their system as an employee they do not want to pay him 1099 because there will be a question of him being a contractor versus an employee. They are probably not clear they are meeting the contractor guidelines.
TK
IMBETA wrote:
"IMBETA" wrote
Yes, single member LLC's need to apply for a tax ID number. Use Form SS-4 to do so.
Thanks. I passed it on.
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