We are going to keep it as a sole proprietorship. We would like to keep the same name. The only reason we want to transfer it to my name is XXXXX XXXXX purposes.
It will stay in New Hampshire.
Thank you for your patience. Here is the process in a nutshell for a sole proprietorship, although please be aware that for liability purposes setting up an LLC or other entity may be a wise consideration.You would need to send a letter to the IRS informing them of the change in ownership. It is, for all practical purposes, a new business entity if it is being set up under you. No form is required for this, but the IRS must be aware that a transfer took place.Then, you would need to fill out Form 1065 and send it to the IRS denoting the change in ownership and that you are now listed as the proprietor.In addition the New Hampshire Corporation Division requires that you also dissolve the Sole Proprietorship first. You should be able to find the relevant forms at their site below:http://sos.nh.gov/corp_div.aspxOnce the business is dissolved, then you can move forward the restablish it under your own name. After speaking with their division directly, I was informed that a transfer cannot take place, you would need to first dissolve and then restart the business under your own name.Good luck.
Thank you. XXXXX checked out form 1065 and it deals with partnerships .. ? This is not currently a partnership, or is it going to be.
Thank you for your follow-up.My apologies, you are correct, Form 1065 is used if you re-set the proprietorship up as an LLP once you restart the entity. With my focus on suggesting that the sole proprietorship be modified into a business structure, I put that in as an additional step. Again, my apologies. Sending a letter to the IRS informing them of the change and letting them know that the EIN is being transferred to you is sufficient. But please at least consider placing the business under some sort of protection. While having you control the EIN will affect your taxes, in terms of liability you and your spouse will still continue to be personally liable in case anything occurs and the business entity ends up being sued, for example.Good luck.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).