Sole Proprietor >>> LLC?

Business structures are regulated by the state, so you'll need to ask locally. I'd start with your state's website (YOURSTATE.gov).

Many sole proprietors use their SSN instead of an EIN, however if you are already using an EIN as a sole proprietor and then form an LLC, you would have to request a new EIN because the LLC is a completely new entity even if it uses the same name.

Hello Reapr,

I am in the process of setting up an entity myself. After much research I decided against an LLC and am going with a regular C corp based in Nevada. LLC's have been in the crosshairs of regulatory agencies lately. If the records are not kept properly, and the rules are ambiguous at best, the corporate veil is pierced easily.

I have a friend who owned a "Quick Lube" oil change place that was an LLC and he got raked over the coals recently. As for me, I would recommend a C-Corp, learn how to keep it compliant with proper record keeping and seek the advice of licensed attorneys and CPA's.

IANAL - you are well advised to seek help from a lawyer or accountant in your jurisdiction since the laws are different in different states/countries.

e.g. here in NC you can form and LLC/Corp and have it buy the asserts etc of the sole proprietorship - so its not technically converting it, but that's the result.

Reading the rules at the IRS website says you can not re-use an EIN number - but will have to request a new one. In NC its the same for the Dept of revenue too - you need to get a new tax id number.

Depending on what your articles of incorporation (or whatever they're called for an llc) then you should be able to do any sort of business you state in your legal documents - so consulting and affiliate marketing should be fine.

if you're doing any sort of consulting and/or coaching then I sure hope you have E&O insurance (errors and omissions). Its frightening to think of how many people just jump into things without adequate protection- and don't think for a minuet that your llc or incorporation are the end all and be all for protection. Get the insurance!

Again - why are you asking legal questions here? Do not believe anything you read - even what I just wrote, since IANAL.....

good luck,
--Jack

Can a sole proprietor be converted to a LLC or is there a more complicated process? - Yes.

If so can a sole proprietor who has been converted to a LLC still use the same EIN? - No.

Can a person have their internet marketing consulting business and affiliate marketing under the same LLC? - Yes.

Yes I know google is my friend but I am hoping there are some warriors who are in the same boat and have made the migration to a LLC that can answer these questions it would sure save some time. Even if they include the usual disclaimer ...

Can anyone recommend a person/lawyer that they have used themselves to file/create a LLC? - This is real easy and you can do it yourself. Otherwise, contact a local attorney.

Listen to Brian(kindsvater).

Here is a place that will walk you through the process and get you the
required documents to get the job done.

http://www.legalzoom.com/limited-lia...-overview.html (not an affiliate link)

Hope that helps,
Have a Great Day!
Michael

It's not hard.

I started as a sole proprietorship, using simply my SS number. Then I set up an LLC with me as the sole member, got an EIC for the LLC, and I contributed assets to the LLC.

Of course, I just formed the LLC myself as venture capital/emerging growth corporate work was what I did as a lawyer before IM.

Of course, the benefit of the LLC (versus the corporation someone mentioned above) is unless you elect to be treated as a corporation by the feds, you'll only get taxed once rather than twice (which you would as a corp).

Tom