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lily500
New Member

I have a single member LLC formed in 2019. Now I want to add my spouse to it and make it a partnership. I am in Georgia. Do I need a new EIN? I have EIN for sole member.

Also can the name remain the same when I change it from sole member to partnership. My company name has LLC, do I need to change it to LLP?
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3 Replies

I have a single member LLC formed in 2019. Now I want to add my spouse to it and make it a partnership. I am in Georgia. Do I need a new EIN? I have EIN for sole member.

Sole Proprietors

You will be required to obtain a new EIN if any of the following statements are true.

  • You are subject to a bankruptcy proceeding.
  • You incorporate.
  • You take in partners and operate as a partnership.
  • You purchase or inherit an existing business that you operate as a sole proprietorship.

 

https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

I have a single member LLC formed in 2019. Now I want to add my spouse to it and make it a partnership. I am in Georgia. Do I need a new EIN? I have EIN for sole member.

there are differences between an LLC and LLP. consult a lawyer. 

https://www.legalzoom.com/articles/difference-between-llc-and-llp?kid=_k_654b4f4bdb881f21d4c02e3d382... 

 

 

both types file form 1065, an LLC but not an LLP can elect to be taxed as a corporation. as to the name check with the state.

 

Carl
Level 15

I have a single member LLC formed in 2019. Now I want to add my spouse to it and make it a partnership. I am in Georgia. Do I need a new EIN? I have EIN for sole member.

May I ask why you want to do this? Depending on the reason, it might make more sense (and will definitely be easier) to just make your spouse a W-2 employee of the single member LLC.

Because GA is not a community property state, you'll need to close the single member LLC and open a multi-member LLC. So you'll be filing a final SCH C with your personal 1040 tax return in the tax year the single-member LLC closes. Then you'll be filing a 1065-Multimember LLC/Partnership tax return in the first tax year the partnership is established. This can get tricky when it comes to transferring depreciating assets from the SCH C to the 1065. Especially since your state also taxes personal income. You would be highly advised to seek the services of a tax professional in your area before you do anything.

 

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