QUESTION
If I have an LLC and want to create a new LLC for specific service, can I use my current FEID number or do I need new one?
Asked on Mar 03rd, 2014 on Taxation - Michigan
More details to this question:
I have a LLC company that I operated. I have a specialized service I want to spin off away from the main LLC. The LLC USES the service that new entity provides, but in order to grow and diversify, if I separate it from the primary LLC I can offer services to other business (competitors) of the primary LLC. If I make the new service a LLC do I need to get a new FEID number for tax purposes? Both of these are single member LLC. I believe I need to do this because of limited liability umbrella needed for the new company based on the service it sells.
3 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would certainly suggest that you counsel with an attorney regarding your plans. Generally if you have a separate LLC it will have a separate federal EIN. It is also possible that the original LLC could on the second LLC. Fully explaining your plans, and the reasons for the segregation of the two services, would assist you in determining the best manner in which to accomplish your goals.
Answered on Mar 05th, 2014 at 4:58 PM
You will need a new one.
Answered on Mar 05th, 2014 at 4:58 PM
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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You need to obtain a new EIN for the new LLC. There could be some tax ramifications to the transactions you are contemplating and I would certainly seek counsel from a tax attorney for your own protection.
Answered on Mar 05th, 2014 at 4:58 PM