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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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Tax Experts Change from Single member LLC (disregarded

Customer Question

Tax Experts
Change from Single member LLC (disregarded entity) to Multi-Member LLC (partnership).
My client did register single-member LLC instead of partnership. It was mistake because partnership had three members from start of the business. Paper extension has been filed for partnership (electronic did not go through).Do we need to call IRS to change from single to partnership before we file tax return? Is there a form which needs to be filed with paper tax return to change the type of entity? Any recommendation?
Submitted: 7 months ago.
Category: Tax
Expert:  Lev replied 7 months ago.
There is no need to call the IRS...What you need to do (1) establish EIN for the partnership and (2) file a partnership tax return on form 1065 and mark it as Initial return.
Customer: replied 7 months ago.
Can we use federal id which was issued for single member llc instead of applying for a new one. In other words just convert single member llc to partnership.
Expert:  Lev replied 7 months ago.
See herehttps://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Do-You-Need-a-New-EINSole Proprietors -- You will be required to obtain a new EIN if any of the following statements are true.-- You take in partners and operate as a partnership.So - you will need a new EIN specifically for the partnership.

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