If I start a Sole Proprietorship and need to switch to an LLC or Corporation can this be done?

Question

Concerning an EIN (Employer Identification Number or Tax Identification Number) If I start a Sole Proprietorship and need to switch to an LLC or Corporation can this be done? (under the same EIN)?

Answer 1

Not if your EIN as a sole proprietor was your SSN

Answer 2

Yes, you can incorporate your sole prop anytime you wish.  Make sure it for a good reason because you will complicate your life immensely by doing so.  Making your sole prop an LLC is usually a simple form and about $100 to your state.  And they are both done with the EIN not changing.

Answer 3

You can keep the same EIN.  You should be cautious about making this change as there can be negative tax consequences.  If you were to become a single member LLC (can also be husband and wife) those are less problematic.