Changed from single member LLC to multimember on the first of the year. Is the single member considered a new partner or an existing one?

[burleykr]

what are the steps for adding a new llc member to a sole member llc with the irs? or convert a single member llc to a multi-member llc?

[IreneS]

If you added a partner to your single-member LLC you are no longer a sole proprietorship.  The new multimember LLC can take different forms--usually a partnership or S-Corporation.  You will no longer be filing a Schedule C in your individual tax return.  A separate return will have to be filed for the multi-member LLC--either a 1065 (partnership return) or 1120S (S-Corporation), depending on how you set up the new entity.

Click here to view some helpful information posted when TurboTaxMaryEllen answered a similar question for another TurboTax customer.

[Rick19744]

You should review Revenue Ruling 99-5 which I have attached as a link.   This explains the impact on the assets that were held.

http://www.unclefed.com/Tax-Bulls/1999/rr99-05.pdf