Business legal structure change

[AFriend]

My business will change from a sole proprietor to an LLC on Dec. 1st 2020. We use square for retail POS. Do I need to open a new account with our new TIN, name and address or can I change the information in the square account I am using now. 

[homeprogreen]

You should be able to just update the information in the business information settings via your dashboard 

[Alex_]

Hi @AFriend,

Welcome! This is a great question. 

As @homeprogreen mentioned, you can just update the business information with the new tax identification number. Keep in mind that we can only issue a single 1099-K under 1 tax identification number for the entire year. We do not offer split 1099-Ks. 

Please let me know if you have any other questions by replying to this thread. 

[AFriend]

I appreciate the help. Thank you for that information, I will wait and switch it over with the new TIN on Jan 1st so all can be reported on the one form. Can I go ahead and open a payroll account with the new information, or should I wait until Jan 1st to do that too?

[Alex_]

For that specific inquiry, I would contact payroll directly by using this contact form.

[AFriend]

Will do. Thank you

[homeprogreen]

You can update with the new number. The IRS will still accept the 1099 with your SS number for the previous year and then for 2021 taxes the 1099 will be issued under the the TIN/EIN