0

I have 2 small business LLC's registered in Wisconsin, each with their own EIN. Call them Company A LLC and Company B LLC. I'm converting Company A LLC into an S Corp. Company B LLC will have it's sales run under Company A LLC, and cease operating as a separate entity. I plan on calling Company B LLC, Company B Shop.

I need to get a new checking account in the name of Company B Shop but my bank is saying that I need to contact the IRS and get a new SS-4 Form listing Company B Shop with Company A LLC's EIN. I tried contacting the IRS and wasn't able to get through. My accountant said I just need to setup a DBA through the state of Wisconsin. Can anyone point me in the right direction here? Thanks in advance and I know it's confusing!

2
  • 1
    Please explain the term DBA.
    – dg99
    Mar 25, 2015 at 21:47
  • 1
    DBA = doing business as. A public declaration that links a fictitious business name with the legal name of the person who owns it.
    – mkennedy
    Mar 25, 2015 at 23:00

1 Answer 1

2

You're confusing a lot of things here.

Company B LLC will have it's sales run under Company A LLC, and cease operating as a separate entity

These two are contradicting each other. If B LLC ceases to exist - it is not going to have it's sales run under A LLC, since there will be no sales to run for a non-existent company.

What happens is that you merge B LLC into A LLC, and then convert A LLC into S Corp. So you're cancelling the EIN for B LLC, you're cancelling the EIN for A LLC - because both entities cease to exist. You then create a EIN for A Corp, which is the converted A LLC, and you create a DBA where A Corp DBA B Shop. You then go to the bank and open the account for A Corp DBA B Shop with the EIN you just created for A Corp.

Get a better accountant. Before you convert to S-Corp.

2
  • My account is keeping Company A LLC as the name of the S Corp with the same EIN that Company A LLC had/has.
    – Tom
    Mar 26, 2015 at 13:49
  • @Tom you cannot do that. You cannot change entity and keep the same EIN, you have to re-issue a new EIN.
    – littleadv
    Mar 30, 2015 at 4:52

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .