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pcaronsr
Returning Member

Changed Business type from a Sole Proprietor to an LLC

My spouse changed her business from a Sole Proprietor to an LLC, do I say that she sold / disposed of the other business? I am preparing two  Schedule C.

5 Replies
DoninGA
Level 15

Changed Business type from a Sole Proprietor to an LLC

What type of LLC?  A single member LLC that has Not incorporated?  A single member LLC that has incorporated as as S Corp?  Or a multi-member LLC?

pcaronsr
Returning Member

Changed Business type from a Sole Proprietor to an LLC

A single member LLC that has Not incorporated

Carl
Level 15

Changed Business type from a Sole Proprietor to an LLC

If all that was done was to change the business from a sole proprietor which only has one owner, to a single member LLC which also has only one owner, you do absolutely nothing on the tax front what-so-ever. When it comes to taxes, the absolute only difference between a sole proprietorship and a single member LLC is the spelling. That's it. Literally! So not one single thing changes on your tax return. But if you want, you can add the letters "LLC" to the end of the current business name.

 

pcaronsr
Returning Member

Changed Business type from a Sole Proprietor to an LLC

Since she got a new EIN for the LLC, do I need to complete two separate Schedule Cs? Which is what I have started to do.

VictorW9
Expert Alumni

Changed Business type from a Sole Proprietor to an LLC

@ pcaronsr"Since she got a new EIN for the LLC, do I need to complete two separate Schedule Cs? Which is what I have started to do."

 

You can if you want. But duplicating the activity of the same company is probably unnecessary and not required. It is still fine to just use one schedule C with the newly issued EIN.

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