If I filed for a partnership EIN, can I file my first year business taxes under sole proprietorship and each year afterwards?

[shell1814]

I opened this LLC in 2012 and am behind filing our taxes because of the penalties I fear and being inexperienced to be frank. I am wondering if I can file all these past returns as a sole proprietorship rather than a partnership. The partnership never happened but I never changed the EIN. Any thoughts? Does the EIN matter? 

[Rick19744 · Accepted solution]

When you say you "filed for a partnership EIN" was this to be a multi-member LLC or a single member LLC?

If this is only a single member LLC, then you really do not need a separate EIN unless you had employees.  If that is the case, then you can file the past returns on your Sch C using your SS#.

The only issue that may cause a problem is if you received any 1099's under the EIN of the LLC.

If you could provide some additional guidance on the questions above we can probably bring clarity and a conclusion to your issue / question.

[shell1814]

Thank you for the quick response! If I remember correctly, it was as a multi-member LLC. I used the EIN to open a banking account but that is about it. I have not received any 1099's or have employees. I have had a few customers request W-9's (2 out of 300).

[Rick19744]

If the partnership / LLC never began its trade or business and derived no income or incurred any expenses, then no Form 1065 will need to be filed.  However, to open a bank account I assume some $$ had to be deposited.  Were these funds just distributed back to the member's?

If all of your income was derived through your sole proprietorship, then file everything under your Form 1040 Schedule C using your social security number.

[shell1814]

Sorry I wasn't clear on this. The company moved forward with one owner instead of 2, so the bank account has been used for 3 years now. I had formed the entity (obtained EIN and bank account) and then the other person backed out.

[Rick19744]

So when you were generating revenue was it with the LLC or you individually?

At the end of the day, the end tax result will be the same.  There could be some legal protection using the single member LLC but you should consult an attorney on this matter.

From a tax perspective, using a single member LLC or through you individually, both would use the Schedule C to report income and expenses and as stated above, the tax consequences would be identical.  If you do decide to use the single member LLC and you do not have any employees, I would report under your social security number.

[jilliangeurts]

Hello there. This thread has been very useful and I am in a similar situation of having begun a business and obtained an EIN but then had my partner essentially not be a part of anything from that point. I did receive 1099s because we used the bank account to pay for things, but the only employees I had were contracted for single jobs.  It is a small theatre company that has always operated at breaking even or at a loss. I personally always covered the loss.  I need to file taxes for the last few years and am hoping to do so on my schedule C...however, we are registered as a multi-member LLC. Any advice would be appreciated. Thank you!