Tax I.D. For LLC
Hi, i recently started an LLC for sub2 investing. my lawyer sent a letter along with the arcticles of organization stating that i need to get a tax identification number. currently i have set up my buisness bank account with my social #, and my buis tele # in my personal name. now i now that the main idea of an llc is to seperate my buisness assets from my personal assets and protection, does the tax i.d. make it so my entity is completly seperate from me? and should i run out and get this tax i.d. and then change my accounts immediatly or wait intill i do a deal? i have not talked to a c.p.a. yet but i will after im doing deals. any insight would be great thanx. Jeb[ Edited by ZinOrganization on Date 08/03/2004 ]
The tax ID number is a small part of the process of setting up an LLC. You also need to file the articles of organization and possibly the initial list of managers or members for the LLC.
There is generally a 2-8 week delay before your LLC is accepted by the state. Make sure you reserve your LLC name before you file these documents. Also once you file all of these documents you must also prepare a LLC operating agreement. This costs between $500-$3,000 depending on who prepares it (i.e., CPA or attorney).
You should immediately change your bank account when legally allowed. You will need a separate credit card, business card, telephone number, etc. to establish this entity as a true "LLC" to protect any assets you contribute to the LLC.
Nevada is the best state to set up an LLC as it has the best LLC legal entity protection rules for those individuals who combine business and personal bank accounts, forget meetings, co-mingle funds, etc. California has the worst LLC protection rules and the highest success rate in piercing the corporate veil. If you “pierce the corporate veil” you have effectively allowed the lawsuit to go after the assets in the LLC.
[ Edited by ScipioZama on Date 08/04/2004 ][ Edited by ScipioZama on Date 08/04/2004 ]