I am going to be a shopify store and I need to pay taxes and I am under 18 so what i did was form an llc with my parents on the irs website.When I did I recieved my ein but shopify couldnt verify since I just made it and it hasnt been recognized yet. So I am waiting 2 weeks for the irs to update their system but what happens if i didnt file with new york state?Does my ein become invalid or do i just have no lawsuit protection?
If I go on the irs website and form an LLC and get an ein number but i dont tell my state(NY) what happens?I've already recieved my ein
byu/Own-Blueberry9335 intax
Posted by Own-Blueberry9335
1 Comment
You didn’t form an LLC. You told the IRS that you did but that’s not how it works. LLC’s are state legal functions – not federal tax functions. Your state is the only one that can grant that to you – because that entity is what gives you access to the legal system of protections in your state. The IRS has no authority or responsibility in this process and only play a role in issuing an identifying number AFTER the entity is OFFICIALLY formed as recognized by the state. Now you potentially have a giant mess if that name is not available in your state. You told IRS that your entity was formed in March – and my guess is that even if you applied with your state today it would be April before they grant it unless you opt for a very expensive rush option – so your formation dates are going to be all jacked up. Potentially as bad if not worse – you have no operating agreements or even informal formation documents to protect you in the event of a lawsuit. You took shortcuts – so good luck protecting yourself. Get pro help before you get yourself in real trouble. Find an incorporation attorney.