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Roman1
January 11, 2019

From LLC Partnership to LLC Sole owner: What Tax Form ?

  • January 11, 2019
  • 1 reply
  • 0 views

Hello, 

 

I became Sole owner of a LLC 08/02/2018. It was runned before as LLC Partnership filling every year a 1065 form.

 

What form should I use for 2018 ? 

Should I use a:

- 1065 Form for the Period 1/1/2018 to 8/1/2018

And

- 1040 Form for the Period 8/2/2018 to 12/31/2018 

 

Can I still opt for S corp tax for 2018 and fill a 1120s Form (Knowing that I was drawing money when I wanted as sole owner during the year?), does it worth it ? 

 

Thank you for your advices!

    1 reply

    Rustler
    Rustler
    January 30, 2019

    From what I understand you need to get  a new EIN for the sole proprietorship
    https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

    don't forget to close the partnership with the state, and you need a new state sales tax number for the sole proprietorship too.  The partnership needs to pay all sales taxes before you close the partnership registration and ask for a paid in full sales tax account statement for your records.

    Yes, you file a final form 1065 for the time period the partnership operated
    and
    Yes you file a schedule C for the remainder of the year.

    yes you can elect to be taxed as an s-corp for the partial year if you meet the requirements, but in addition to this article I strongly suggest you get with a tax accountant
    https://watsoncpagroup.com/kb/electing-s-corp-filing-status-retroactive-for-2018_189.html

    as to the equity draw vs payroll, that is a tax sticky wicket kind of question and you should get with a tax accountant on that one.

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