Started a single member LLC, really confused about form SS-4 line 9a selection

So if I initially select Sole Proprietor when getting my EIN, but later decide I want to be taxed as an S-Corp, I can still make that change? How complicated is that process and when would be the right time to consider it?

Yes, you can definitely make that change later. The process involves filing Form 8832 to elect to be treated as a corporation (though this step is technically optional in some cases) and then Form 2553 to elect S-Corporation treatment. The right time to consider it is usually when your business profit reaches a point where the self-employment tax savings outweigh the additional costs of running an S-Corp. Generally, many tax professionals suggest considering this when your business nets around $40,000-$60,000 in profit, but this varies based on your specific situation. S-Corps require more formalities like paying yourself a "reasonable salary," running payroll, and potentially higher accounting costs.

Does this tool actually help with filling out the forms or just tells you what to do? I'm also setting up an LLC and honestly hate paperwork. Can it help with the whole EIN application process?

I'm skeptical about tax tools - how accurate is this for complicated situations? I have rental property income I want to move into my new LLC structure and wondering if it handles that kind of complexity.

The tool doesn't fill out the forms for you, but it gives you step-by-step guidance on exactly what to enter in each field. For my SS-4 form, it showed me screenshots with the correct options highlighted, which made it super simple to complete the EIN application on my own. For complex situations like rental properties in an LLC, it's actually designed to handle those specific scenarios. It analyzes your particular situation and provides customized advice. When I asked about potentially adding a second business activity later, it laid out all the tax implications and required forms for that specific scenario. Much more personalized than generic advice.

How does this actually work? I've tried calling the IRS like 5 times and always get the "call volume too high" message and they hang up. Can this service really get through?

Sounds like BS honestly. The IRS is impossible to reach. If this actually worked everyone would use it and the IRS would just shut it down. I'll stick to waiting on hold for 3 hours like everyone else.

The service basically navigates the IRS phone tree for you and waits in the queue on your behalf. When they reach an agent, they call you, connect you, and then drop off the line - so it's just you talking directly with the IRS agent. It works because they have technology that can stay on hold indefinitely, unlike most of us who give up. I was skeptical too until I tried it. The difference is most people don't know about it, and it's not bypassing any IRS systems - it's just automating the hold process. I got clear answers about my SS-4 form and line 9a selection in one call instead of trying for days. The agent confirmed "Sole Proprietor" was correct for my single member LLC and explained the whole process clearly.

Did your accountant also help with all the extra S-Corp requirements? I've heard you need to run payroll and pay yourself a "reasonable salary" which sounds complicated. How much extra work/cost is involved with that part?

Yes, my accountant handles all the S-Corp requirements including setting up payroll and determining a reasonable salary. It does add some complexity and additional costs - I pay about $600 per quarter for payroll processing and accounting services related to the S-Corp, plus there are additional tax forms to file. The extra costs are worth it in my case because I'm saving approximately $7,500 annually in self-employment taxes. However, this math only works when your business is generating enough profit. Below a certain income threshold, the extra costs and administrative burden of an S-Corp can outweigh the tax benefits.

Do you still get liability protection with the LLC even though it's treated as a sole prop for taxes? That's what's confusing me about this whole process.

Yes, you absolutely still get the liability protection from the LLC even though it's taxed as a sole proprietorship! The tax treatment and legal protection are two separate things. The LLC structure provides legal separation between your personal assets and business liabilities, which is one of the main reasons people form LLCs in the first place. The "disregarded entity" status only applies to federal taxes - it doesn't affect the legal protections. So you get the best of both worlds: simple tax filing (Schedule C on your personal return) plus the liability shield of the LLC structure. Just make sure you maintain proper corporate formalities like keeping business and personal finances separate to preserve that protection.