Partnership LLC to Single member LLC

Forum|Forum|2 years ago
December 11, 2023
2 replies
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I have a customer that is a father and son business. The dad is stepping away and I am wanting to just convert the partnership llc to a single member llc. From some things I have read I need to obtain a new ein but others are saying it is not necessary. What are your thoughts?

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George4Tacks

Level 15

You need to file a final Partnership and quit using that EIN. There is now a Schedule C disregarded entity that MAY need to get a new EIN, if there are employees.

There may be tax consequences of dad stepping away. Was there equipment? If there some gifting going to happen?

Answers are easy. Questions are hard!

T

TaxGuyBill

Level 15

An LLC with more than member that goes to a single member does NOT need a new EIN.

https://sa.www4.irs.gov/modiein/individual/help/help-toc.jsp

However, the EIN for an LLC is only used for payroll and excise taxes. For income tax purposes (such as filling out a W-9 and receiving 1099s), the W-9 instructions indicate that they would want to use an EIN under the name of the individual person (not in the name of the LLC).