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Wednesday, August 3, 2011

EIN for the LLP?

OK, here's a difference. The phone number for the special IRS service to set up EIN numbers for foreigners has changed. (267)-941-1099. They basically walk you through the SS-4 application form that can be found on the IRS website, and give you the EIN at the end of the call. Unbelievable. Imagine that happening in Canada.

Another important outcome is the name of the form that you should fill out at tax time for this LLP. It should be a 1065. If it is not, then go back and figure out which answer you gave them that drove a different outcome and try a different answer until you get 1065 as the outcome. This is the correct form for LLPs (and LLCs for that matter) being used for holding/renting property.

The IRS will follow up the call with a letter confirming the EIN and indication that you should fill out a 1065 at tax time. Keep that letter for the LLP files.

Oh yes, why do you want an EIN in the first place? (a) You need it to open a bank account for the LLP; and (b) you need it to annually file the 1065 tax form for the LLP. Somewhere along the way they will ask that question in the phone call...why do you need an EIN? The magic words are "to get a bank account".

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