FEIN and business

[TAXMAN]

I have a sole prop that runs a lawn mowing and landscaping business under a dba name. No corp or llc or ptr. The FID number is under his name. TP has now decided to open up a mini golf/ice cream stand under a DBA. Still under his name. I believe I can use the same FED#. My problem is when I go to create W-2 next year would I have one set under mowing and second under golf or would they all be under mowing since the number is under his name.

IRS would not give us a second ID # unless we change form of business which TP doesn't want to do.

Your thoughts

[Lee B]

Yeah, I have a payroll client that used to have 2 different schedule C businesses, an espresso drive thru and a garden supply store with the payroll being done by

2 different people. What a mess.The payroll reports all needed to be merged. Unless the same firm or person is handling the payroll and has the ability to merge the information together into combined reports, find a different way to handle this situation !

[Lion EA]

The ID# is under your client's name, right? So, payroll will be under his name, too. The payroll reports should have ALL the payroll that's under his name. As far as wages/payroll taxes on each Schedule C, that would be the actual amounts attributable. Or, is he going to have one Schedule C with two DBAs? I guess that would depend on if he organized for the biz purpose of mowing or for any legal biz purpose. And, whether or not he needs to keep the two separate for liability insurance purposes. Have fun.

[Medlin Software, Dennis]

The tax agencies prefer one report per EIN, but they have no problem accepting/accumulating multiple reports per EIN (W2/W3 included).  When asked, I suggest if the owner(s) want to keep separate books, there must be a reason, and that reason likely should be expanded to make them entirely separate for potential liability, succession, sale, etc.  A good recent example is PPP and ERC.  Separate entities would likely open eligibility to both, maybe more optimally than as one EIN.

[Lee B]

5 minutes ago, Medlin Software said:

The tax agencies prefer one report per EIN, but they have no problem accepting/accumulating multiple reports per EIN (W2/W3 included).  When asked, I suggest if the owner(s) want to keep separate books, there must be a reason, and that reason likely should be expanded to make them entirely separate for potential liability, succession, sale, etc.  A good recent example is PPP and ERC.  Separate entities would likely open eligibility to both, maybe more optimally than as one EIN.

Perhaps that's your understanding, but it  is absolutely not what happened to my client.

[Medlin Software, Dennis]

Personally, the issue is moot, as the business owner, should they be receptive to common sense advice, would have some sort of cooperation or other entity for liability reasons, especially with the mini golf aspect.