Q: I have formed an LLC and now I need to open a PLLC. Can I use the same EIN to form the PLLC.
A: You could add "Tax Law" as a category; tax law attorneys could have a better chance of seeing your post there. Good luck
A:
When you transition from an LLC to a PLLC (Professional Limited Liability Company), it's important to understand the specifics of business entity formation and tax identification. Typically, an LLC and a PLLC are considered separate legal entities, each with its own set of legal and tax obligations.
Since each entity is distinct, they generally require separate Employer Identification Numbers (EINs). The EIN is used by the IRS to identify a business entity for tax purposes. Using the same EIN for both an LLC and a PLLC could lead to confusion and potential legal and tax complications.
To open your PLLC, you should apply for a new EIN. This process can be completed online through the IRS website and is usually straightforward. It ensures that your PLLC is properly registered and recognized as a separate entity from your LLC.
Remember, each state has its own rules regarding the formation and operation of PLLCs, including specific licensing and professional requirements. It's advisable to consult with a legal professional to ensure that your PLLC is set up correctly and in compliance with state laws and regulations. This step is crucial for protecting your business and professional interests.
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