regarding llc and financing. how will i qualify for a loan as a llc if there are no assets in my llc. do i need to move personal assets to my llc to qualify?
Short answer is that with a new LLC, you probably can’t. You’ll need to personally guarantee the loan. You will probably also need to start with some lines of credit (Lowes? Home Depot? Sears?) and build a credit history…unless you’re a “brick”.
Keith
That is true of loans, BUT you can get credit cards in the name of your business. The amount of credit line thru each bank will vary but will also look at your credit score. Last two I got was from BoA - 25k and Citigroup - 20k. 
I hope you applied for EIN from the IRS. That is the key. Up until yesterday, I didnt have any assets in my LLC!!!
steve
What are the advantages/disadvantages of applying for an EIN. As a “sole proprietor” in an LLC he’s not required to apply for one. Is there a reason that he should? Is there tax implications? Is it easier to get credit?
an LLC entity (not an individual) will be required to have a TIN, even if the LLC is being taxed as a sole proprietorship. It is still a seperate entity. How it is taxed is only a tax election. for an LLC to use the individual owner’s SSN is comingling.
An individual may want a TIN to avoid putting his SSN on everything.
To MCWAGNER
My present management company is a 2 person (99%-1%) LLC. The 1% has been untrustworthy so I need to remove him without his consent,close it, and open a new LLC with a trusty 1%er or a one person LLC. My accountant doesn’t want me to open a one person LLC because that would go directly on my 1040. But do you see any problems with that?That LLC has two parttime employees , uses paychex, and has the workman’s comp. insurance. It shows minimal profit.
McW,
I’m a little confused on the EIN/TIN point. ???
Am I reading the IRS instructions for the SS-4 request for EIN correctly? It says a single member domestic LLC which accepts the default classification (desregarded entity) does not need an EIN and generally should not file form SS-4. Generally the LLC should use the name and EIN of it’s owner for Federal Tax perposes. That’s exactly as it reads.
Then it goes on to say that if you want one for other purposes that you can apply for one.
http://www.irs.gov/pub/irs-pdf/iss4.pdf
Page 4 left column in the middle.
Spaceace,
You are correct. The IRS does not “require” the disregarded entity LLC to have a TIN apart from its owner’s SSN, UNLESS the LLC has employees.
However, if you want to establish credit in the name of your entity and avoid having your entity’s credit history appearing on your personal credit report, then you want to get a TIN for your entity.
The IRS does not refuse to give your entity a TIN, just says that a disregarded entity LLC does not have to have one. Their reasoning is that a disregarded entity does not file a tax return in its own right. Instead, the member reports all the LLC activity on his/her personal 1040 under his/her SSN.
If I got any of this wrong, I hope Mark will step in to correct me.
nope. I was wrong to use the word “required” in my explanation. However, using the individuals SSN degrades some of the asset protection afforded to the LLC because it blurs the line between the LLC and the person (less “seperate-ness”?) Having a TIN creates more distinction between the two, and reinforces the concept the sole-proprietor is only a tax election.
Dave,you are right on target.
I would also recommend a TIN just so you don’t have your SSN floating around everywhere.
Thanks for clearing that up fellas. Much appreciated.
hey guys,
is a TIN a tax number?
taxpayer identification number
thanks mcwagner.