Choosing Tax Classification for Single Member LLC

Discussion in 'General Business' started by affiliatemarket5000, Sep 17, 2008.

  1. #1
    Hello All,

    I formed an LLC for my affiliate marketing business. When I signed up for CJ, they asked me to fill out a W-9 form.

    My question is, do I select "Disregarded Entity" or "Corporation" as the Tax Classification?

    If I choose "Disregarded Entity", I have to provide my Social Security number and if I choose "Corporation", I have to provide the EIN for the company.

    I want to avoid giving my Social Security number at all costs.

    If anyone has a similar situation please let me know,

    Thanks!
     
    affiliatemarket5000, Sep 17, 2008 IP
  2. embarq

    embarq Peon

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    #2
    If you have an LLC, you should have an EIN. You're going to need to use one or the other. You can get an EIN with a single member LLC. While you're at it, you should probably figure out how you want to file your taxes for the LLC. I always convert LLC's into S-Corp's so that they have pass-through taxation (ie. the company's income is not taxed, only what you "pay" yourself is taxed on your personal returns). This may or may not be the best classification for your situation, you'd have to discuss it with your accountant. However, you do need to think about it because you need to file the form with the IRS to change your classification before a certain date for the classification to take effect for the current tax year.
     
    embarq, Sep 17, 2008 IP
    affiliatemarket5000 likes this.
  3. KGL

    KGL Peon

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    #3
    This is something I have been wrestling with. I have never heard of pass-through taxation. Will have to check into that.
     
    KGL, Sep 17, 2008 IP
  4. embarq

    embarq Peon

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    #4
    It's definitely worth looking into. Like I said, it may or may not be best for you. Your accountant can help you make that decision. The IRS form I'm talking about is Form 2553.
     
    embarq, Sep 19, 2008 IP
  5. cipals15

    cipals15 Well-Known Member

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    #5
    Are you from the United States?
     
    cipals15, Sep 19, 2008 IP
  6. affiliatemarket5000

    affiliatemarket5000 Guest

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    #6
    Yes I am from the United States and a US citizen.
     
    affiliatemarket5000, Sep 20, 2008 IP
  7. primeelite

    primeelite Peon

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    #7
    Yep an LLC is a corp. You need to provide your EIN to get proper taxing of your business.
     
    primeelite, Sep 20, 2008 IP