Pls walk me thru 1065 to Sch C - new EIN?

[WITAXLADY]

2 person 1065, LLC and EIN - now just 1 person - Sch C - does he need a new EIN? Or can he just do final 1065 and use the EIN

Or wouldn't that also stop the EIN?

Seems to me he needs a new EIN?

But how can he keep the same name and WI sales tax? and still same LLC - just 1 person now

working to hard!! Please clear this up if you can?

thx

D

 

[Lee B]

I had  a client with this situation 5 or 6 years ago.

Depending on dates and how the details of how the the 2nd partner departed, a final partnership return would be filed.

The LLC by default with only 1 member left becomes a disregarded entity filing a Schedule C under their SSN.

If there are payroll employees of course a new EIN would be required.

Also the PTS EIN would need to be officially closed.

 

[WITAXLADY]

the issue is the WI state sales tax is filed under the EIN and the LLC -

We can change the LLC to 1 but now we'd have to change all the state info to a new EIN.. Grrr

D

[DANRVAN]

Unfortunately since the business has become a new entity, it cannot use the ein of the former partnership.

 

 

[WITAXLADY]

ok - that makes sense..

thankyou all!

 

[WITAXLADY]

wait!! How does he get to keep the same name he has established???

[DANRVAN]

1 hour ago, WITAXLADY said:

wait!! How does he get to keep the same name he has established???

 

I think that depends on how he registers with the state, IRS does not care.

[mcb39]

We have so little guidance on Wi tax law.  Seems like you either "know" it or you "don't".  Call the people at My Tax Account.  They are very knowledgeable and helpful.

[JackieCPA]

Cannot they just file 8832 change in entity clasification?

[Lee B]

35 minutes ago, JackieCPA said:

Cannot they just file 8832 change in entity clasification?

"Note. For information on the federal tax consequences of elective changes in classification, see Regulations section 301.7701-3(g)."

Reading the instructions for Form 8832, it may be possible in certain situations if you meet the necessary requirements,

however it may have undesirable consequences.

[DANRVAN]

23 hours ago, WITAXLADY said:

How does he get to keep the same name he has established???

 

21 hours ago, DANRVAN said:

I think that depends on how he registers with the state, IRS does not care.

 

Your state probably does not care  either.

 

I had a similar situation with an Oregon client that went from partnership to sole proprietor and kept the same business name.

 

 They track the business by identification number not the name.

 

 

 

 

[mcb39]

I had a small business go from S Corp to Qualified Joint Venture.  I just had to write a letter to the State informing them what had transpired.  Actually just a copy of the IRS letter dissolving the S Corp.  They kept the same name.

[Lee B]

On 3/22/2023 at 9:07 PM, WITAXLADY said:

wait!! How does he get to keep the same name he has established???

Yes, but you would have to amend your business registration.