Posted by Dan on 1/3/05 2:32am
Msg #15278

EIN

Hello everyone! My wife is new and I am going to take the classes as well.
So I am wondering about the EIN.
Taxwise,does it make cents to go with a business name or is your own name preferable.
Line two of the EIN form asks about a business name.
Thank you for any information,all.

Reply by Loretta Reed on 1/3/05 7:16am
Msg #15281

I have an LLC (Limited Liability Corp). I decided to become incorporated because of some tax advantages and "some" protection against lawsuits in case a borrower sues me. It also protects my Social Security number so I am not throwing it out to every title company and signing company in the world.

Reply by Tony (FL) on 1/3/05 8:28am
Msg #15284

I use my name. I am a professional in the business and well known by signing services, title companies and lenders. In my opinion the name recognition when you provide quality service is very important. For the purposes of tax reporting I don't believe there is any advantage to a company name vs individual but I am not an accountant or professional tax preparer.

http://floridaloancloser.com

Reply by Loretta Reed on 1/3/05 9:28am
Msg #15290

By becoming incorporated (you can still become incorporated using your name), you put a fine line between you as an individual and you as a company. I would suggest that anyone self employed see an accountant and get advise about being in a business for themselves and the liability that you can come under. I have an accountant who is also my tax preparer and he recommended that I become incorporated. If and when you ever get sued, there are laws that can protect your personal property.

Reply by Jon on 1/3/05 11:00am
Msg #15295

You can file a FBN and still be a sole proprietor. You can get an EIN without being incorporated. The business name does not make a difference in your taxes, whether you are a sole proprietor, LLC, or corporation does.

Reply by Loretta Reed on 1/3/05 9:05pm
Msg #15353

I know that. That is why I became a LLC.

Reply by JanetK/CA on 1/3/05 5:36pm
Msg #15333

In some areas, the name you choose could have other cost implications. For example, a ficticious business name may require you to get a business license (that may or may not be required otherwise, depending on your local laws), register a dba, which may require placing an ad in a newpaper and other fees. You also might have to do a name search to make sure you don't use a name that is registered to someone else. I'm no expert on this, but if you decide to use a dba, you should probably get advice from an attorney.