GregJ Posted April 26, 2016 Posted April 26, 2016 I want to setup an individual 401K for my wife at TD Ameritrade. My wife has a single member LLC for her business. She uses her own SSN on all forms including W-9 forms. The TD 401K application forms require you to specify an EIN, employer name, and type of business. Should we fill out the application as an LLC or a Sole Proprietorship? I know the IRS sees this LLC as a disregarded entity as treats my wife as a sole proprietor. My main question is what type of EIN to obtain and use (Sole Proprietorship vs LLC)? I have read the IRS forms which state the LLC EIN really shouldn't be used except for a few specific cases like excise taxes. Sole Proprietorship EIN: Sole Proprietor EIN Employer Name: Wife's Name Type of Business: Sole Proprietorship LLC EIN: LLC EIN Employer Name: LLC Name Type of Business: LLC Thank you
Bird Posted April 26, 2016 Posted April 26, 2016 There are IRS instructions somewhere, I don't remember where, that say you must have a separate EIN for a business if you sponsor a retirement plan. The LLC is disregarded for tax purposes but that's the entity that is operating the business and sponsoring the plan, so I'd get a tax id for that entity. Ed Snyder
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