Question

Small Business Tax Questions

Forum|Forum|4 years ago
October 27, 2021
1 reply
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I own a new very small bee hive farm with a partner. We only have 1 hive so far and don't plan on showing a profit for at least 3 years (until we can buy at least 3 more hives) - Do we both need to have separate EIN numbers for the business expenses for these first few years or can we use 1 EIN (we've separated all the expenses & receipts up to this point?

Also - do we need to worry about an LLC until we actually have significant profits?

Critter-3

Once you form a partnership you must get an EIN and file either a partnership return or a corporate return if you choose to be taxed as such. I highly recommend you seek local professional guidance to choose the correct business entity for your goals and needs.

https://www.irs.gov/businesses/small-businesses-self-employed/starting-a-business

S

sage311Author

Seems like a lot of paperwork to form a partnership that will only have about 3K in liabilities (spilt between the 2 of us) with 0 profits for this 1st year.