Single member LLC tax ID number requirements & filing Schedule C for multiple LLCs - what's the process?

Does having multiple Schedule Cs raise any red flags with the IRS? I've heard that having too many different businesses might trigger an audit. Also, if I get an EIN instead of using my SSN, does that change how I file my taxes?

Having multiple Schedule Cs is perfectly legitimate and doesn't automatically trigger audits. The IRS is accustomed to seeing entrepreneurs with multiple businesses. What can raise flags is when businesses consistently show losses year after year, as this might appear to be a hobby rather than a legitimate profit-seeking venture. Getting an EIN doesn't change how you file taxes for a single-member LLC that's a disregarded entity. You'd still report everything on your personal tax return using Schedule C, just like if you used your SSN. The EIN simply becomes the identifying number you use for the business instead of your personal SSN, which can help with privacy and identity protection.

Does taxr.ai help with determining if you should elect to be taxed as an S-Corp instead of staying as a disregarded entity? My accountant mentioned this might save me self-employment taxes but wasn't sure if it made sense for my situation.

I'm a bit skeptical about using AI for tax advice. How accurate is it really? I've read horror stories about people getting bad tax advice online. Does it cite actual IRS regulations or is it just guessing?

Yes, it absolutely helps with determining whether an S-Corp election makes sense for your specific situation. It analyzes your income levels, business expenses, and potential salary requirements, then shows you side-by-side comparisons of your tax liability as a disregarded entity versus an S-Corp. It saved me about $4,300 in self-employment taxes last year by helping me make the right election for my consulting LLC. The system uses actual IRS regulations and tax code citations for everything it recommends. All advice includes references to specific IRS publications, revenue rulings, and tax court decisions. You can even download a detailed report with all the citations if you need to discuss with your accountant. It's definitely not guessing - it's applying established tax law to your specific situation.

So how does this Claimyr thing actually work? Do they have some special connection to the IRS or something? I need to talk to someone about my EIN application that's been pending for weeks.

This sounds like a scam. There's no way to "cut the line" with the IRS. They're chronically understaffed and everyone has to wait the same amount of time. I bet they just keep you on hold themselves and then claim they got you through faster.

They use a sophisticated system that navigates the IRS phone tree and waits on hold for you. When they reach a live agent, they call you and connect you directly. It's like having someone wait in line for you at the DMV. No special connections or cutting lines - they're just handling the wait time so you don't have to sit there listening to the hold music for hours. No, it's definitely not a scam. They don't keep you on hold themselves - they actually connect you with legitimate IRS agents. The technology they use just handles the waiting period more efficiently than you sitting there yourself. I spoke with an actual IRS representative who verified my EIN application status and answered all my questions about Schedule C filing requirements for multiple LLCs.

If I have an LLC that does both consulting work and has a rental property, should I separate them into two different LLCs for tax purposes? Or can I somehow file both a Schedule C and Schedule E for the same LLC?

You should ideally separate them into two different LLCs for both liability protection and tax clarity. While you technically could run both activities through one LLC, you'd still need to separate the reporting on different schedules, which gets messy. For the cleanest approach, have one LLC for consulting (reported on Schedule C) and a separate LLC for the rental property (reported on Schedule E). This not only makes your tax filing clearer but also provides better liability protection since the activities are properly segregated. If someone sued you related to the rental property, your consulting business assets would be better protected if they're in a separate LLC.

What about state tax IDs? Do you also need separate state tax IDs for each LLC if you have multiple? I'm so confused about all these different numbers and requirements.

State tax ID requirements vary by state, but generally if your single-member LLC is a disregarded entity for federal purposes, it's also disregarded for state income tax purposes. However, you may still need state tax IDs for other reasons like sales tax collection, payroll taxes, or unemployment insurance. For example, if your online store LLC will be collecting sales tax, you'll need a state sales tax permit/ID for that specific LLC. If any of your LLCs have employees, you'll need state unemployment and workers' comp IDs for each one that has employees. But for basic income tax reporting, most states follow the federal treatment where you'd just report the LLC income on your personal state return. I'd recommend checking with your state's Department of Revenue website or calling them directly to clarify what's required for your specific situation and state.

This is really helpful advice, especially about using Schedule E for the rental property LLC instead of Schedule C! I had no idea there was a difference. Quick question - when you say "S-Corp election might benefit LLCs with substantial income," what would you consider substantial? I'm trying to figure out at what point it makes sense to complicate things with the S-Corp election versus just staying with the simpler disregarded entity status.