I just went through this exact same process last month! The confusion is totally understandable because the rules aren't super clear until you dig into the specifics. Here's what I learned: since you're going from sole prop to LLC, you need to figure out how your LLC will be taxed. If you're staying as a single-member LLC and NOT electing corporate taxation, you can actually keep using your existing sole prop EIN. The IRS treats single-member LLCs as "disregarded entities" by default, which means for tax purposes, you're still essentially a sole proprietorship. However, if you're adding partners (making it multi-member) or electing S-Corp or C-Corp taxation, then yes, you need a new EIN. The good news is there's no formal process to "cancel" your old EIN if you do need a new one - you just stop using it and start using the new one. I'd recommend calling the IRS Business Tax Line to confirm your specific situation, though fair warning - it can take a while to get through! Also, make sure to update your EIN with your bank, any business accounts, and vendors once you figure out what you need to do. That was the part I almost forgot!

This is such a common source of confusion! I went through the same thing when I converted my consulting business from sole prop to LLC last year. The deciding factor really comes down to your tax election. Since you mentioned you're doing this for liability protection (smart move!), you're probably planning to stay as a single-member LLC with disregarded entity status - which means you can absolutely keep your existing EIN. One thing I wish someone had told me earlier: even though you can keep the same EIN, make sure to update your business name with your bank and any vendors to reflect the LLC. I kept getting confused looks when my checks said "ABC Consulting LLC" but my EIN paperwork still showed my personal name from the sole prop days. Also, definitely keep good records of when you made the transition. I created a simple folder with my LLC formation date, operating agreement, and a note about continuing to use my sole prop EIN. Makes things much cleaner if the IRS ever has questions down the road. The liability protection alone makes the LLC worth it - you're making a smart business decision even if the tax side stays exactly the same!

As someone who's worked in business banking for over 8 years, I can't stress enough how important it is to keep that separation between business and personal accounts. What you're describing is called "commingling of funds" and it's one of the fastest ways to lose the liability protection your business structure provides. Here's what most people don't realize: when you deposit business funds into a personal account, you're technically making a constructive distribution to yourself. This means your partners would be entitled to equal distributions, even if they don't know about it initially. It also creates a mess for tax reporting since the 1099-INT will be issued under your SSN instead of your business EIN. My recommendation is to look into online business banks like Axos Bank or Live Oak Bank - they often offer business HYSAs with rates between 3.8-4.3%, which is much more competitive than traditional brick-and-mortar banks. Yes, it might be slightly lower than your personal HYSA, but the peace of mind and proper tax treatment is worth that small difference. Also, with $47k in business funds, you're at the level where you should really have a business accountant review your financial setup anyway. The cost of proper professional advice will likely pay for itself in tax savings and avoided complications down the road.

I'm dealing with a very similar situation with my marketing agency partnership, and after reading through all these responses, I'm convinced that keeping business and personal finances separate is absolutely the right call. What really resonated with me was the point about fiduciary responsibility to your partners. Even if you could somehow make the tax reporting work cleanly (which sounds complicated), you'd essentially be taking control of partnership assets in your personal name. That could create serious trust issues if your partners found out later, and might even violate your operating agreement. I just started researching business HYSAs based on the recommendations here, and it looks like there are actually several competitive options now. The rate difference between 4.5% (personal) and 4.1-4.3% (business) really isn't worth the risk of commingling funds, potential audit issues, and partnership complications. One thing I'm curious about - for those who switched to business HYSAs, did you have to provide extensive documentation about your business operations, or was the EIN and operating agreement sufficient for most banks?

Does the 3-year carryback apply to options on futures too? I trade E-mini S&P options and had massive losses this year, but wasn't sure if they qualify for the same treatment as regular futures contracts.

Just wanted to add some practical advice for anyone considering the Section 1256 carryback - make sure you have all your trading records organized before starting the process. You'll need detailed records of your Section 1256 gains from the previous 3 years to calculate exactly how much you can carry back. Also, be aware that filing Form 1045 (Application for Tentative Refund) can sometimes trigger additional IRS scrutiny, especially if you're claiming large refunds. It's not a reason to avoid using the carryback if you're entitled to it, but just be prepared to potentially provide additional documentation if requested. The carryback can be a huge tax benefit for traders who have volatile years, but the paperwork can be complex. Don't let that discourage you from claiming what you're legally entitled to - just make sure you do it correctly or get professional help if needed.

The withholding difference between Single and Head of Household can be significant! I switched last year and saw about $85 more per biweekly paycheck. One thing to keep in mind is that Head of Household has better standard deduction amounts too - for 2025 it's $22,200 compared to $14,600 for Single filers. This contributes to the lower withholding throughout the year. Also, don't forget to update your W-4 with HR as soon as possible if you decide to make the change. The sooner you do it, the sooner you'll start seeing the increased take-home pay. Just double-check that you meet all the HOH requirements first - the IRS is pretty strict about this filing status.

Great question! As others have mentioned, switching to Head of Household will definitely result in LESS withholding (meaning MORE take-home pay) compared to Single status. This happens because: 1. Head of Household has more favorable tax brackets - you pay lower rates at each income level 2. The standard deduction is much higher ($22,200 vs $14,600 for Single in 2025) 3. With three dependents, you'll benefit from Child Tax Credits being factored into your withholding At your $52,000 income level with three kids, you're looking at roughly $75-120 more per paycheck depending on your pay frequency. This should definitely help with those tight monthly budgets! Just make absolutely sure you qualify for HOH (sounds like you do based on your description) and update your W-4 properly. Fill out Step 3 carefully to account for all three dependents - this is crucial for getting the right withholding amount. The extra money in your paychecks throughout the year will be much more helpful than getting a big refund later!

I was in a similar situation with an old HSA from a previous employer that had around $800 just sitting there. I felt like I was throwing money away since I rarely got sick enough to use it for traditional medical expenses. What really helped me was realizing how broad the definition of "qualified medical expenses" actually is. I ended up using my HSA funds for things I never thought would qualify - like replacing my old contact lenses, buying a new thermometer, stocking up on over-the-counter allergy medication, and even getting a teeth cleaning that my insurance didn't fully cover. The key insight for me was that you don't have to use HSA funds immediately when you have a medical expense. You can pay out of pocket and keep the receipts, then reimburse yourself from your HSA months or even years later. This gives you way more flexibility - you can let the money grow while building up a "bank" of eligible expenses to draw from whenever you actually need the cash. Given that you'd face both income tax AND a 20% penalty on non-qualified withdrawals, I'd really recommend exploring your eligible expenses first. Even if you can't use all $650 right now, using some of it legitimately is better than losing 20%+ to penalties.

I totally get your frustration with having money locked up in an HSA that feels unusable! As someone who's been in a similar situation, I'd strongly advise against risking the penalties though. Even though $650 seems small, the IRS does track HSA distributions through Form 1099-SA, and you'd be looking at income tax PLUS that 20% penalty if you're under 65. That could easily eat up $150+ of your $650. Here's what worked for me: I started thinking more creatively about eligible expenses. Did you know you can use HSA funds for things like band-aids, thermometers, contact lens solution, over-the-counter pain relievers, and even SPF 15+ sunscreen? I went through my old receipts and found tons of stuff I'd paid for out-of-pocket that actually qualified. Also, there's no rush to spend it! HSA money doesn't expire, and you can reimburse yourself years later for qualified expenses. So even if you pay for something medical out-of-pocket today, you can withdraw that amount from your HSA whenever you actually need the cash - no time limit. Trust me, keeping that money for legitimate medical uses (even if they're broader than you think) is way better than losing 20% to penalties. Your future self will thank you when you have an unexpected medical bill!