Convert from C corp to LLC - need new federal tax ID and file what election form?

Forum|Forum|5 years ago
June 16, 2021
1 reply
12 views

HI,

I have a client formed C corp in Oct 2020. 2020 C Corp tax return not filed , but is on extension now.

In May 2021 they converted C corp to LLC with the state of MA.

Can the C Corp keep their tax ID from the C Corp established, or do the LLC need a new tax ID?

Then for the LLC, what election need be filed with IRS in this cituation.

I know LLC need file form 2553 with IRS to electe to be tax as partnership, S or C Corp.

ProConnect Tax

This topic has been closed for replies.

George4Tacks

Level 15

Curiosity makes me what to ask - Who's idea was that?

https://www.thetaxadviser.com/issues/2019/jun/conversion-c-corporation-llc.html

Was this a personal service corporation? Could they elect a year end of 5/31 and at least cut down on the number of returns to be filed. Oh, so many questions.

I hope you get a really big retainer before you go too much further.

Answers are easy. Questions are hard!

S

skyworksAuthor

Level 5

Hi

1. It is a travel conculting and event manage company, not sure if it qualify to personal Corp.

2. The C Corp did not make profit,

3. Any other form need be filed with IRS for Converting from C Corp to LLC?

4. Form 2553 need be filed to elect as S Corp or partnership for tax purpose.

5. Should the LLC request a new tax ID??

sjrcpa

Level 15

Was it a state law conversion to LLC?

Or did they dissolve the Corporation and form an LLC?

Or some other flavor?

The more I know the more I don’t know.

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