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cj16272
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LLC Change?

Hi, I am trying to start a business and registered an LLC.  When I requested an EIN, the IRS letter stated I need to file a form 1065.  Well, when I registered for the LLC, I said partner, meaning my wife and I, but now it's apparent that does not apply to us.  Turbo Tax won't let me do a form 1065, saying I need a business edition.  I then purchased the business edition, but it won't let me file a 1065, saying I does not apply since this is a sole proprietor business and I need to use the home and business edition.  Do I actually need to do a 1065?  Can I change the EIN to be more appropriate?  Do I just file the home and business only?

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2 Replies

LLC Change?

When you apply for an EIN you indicated you would file a partnership form 1065 and that is what the IRS expects you to file.  If you will not run the business as a partnership with your spouse then you need to file a first and final 1065 showing zero income. You do not need a program to do this ... just get the form from the IRS web site and fill it in manually and paper file it. 

 

Then if you want to just be a sole proprietor you should get a new EIN although you don't need one unless you will collect sales taxes or have employees.  

LLC Change?


@cj16272 wrote:

Can I change the EIN to be more appropriate?  Do I just file the home and business only?


You can get a new EIN, but it is not necessary to do so when an LLC changes from more than one member to a single member.

 

See https://sa.www4.irs.gov/modiein/individual/help/keyword.jsp?question=Do%20I%20need%20a%20new%20EIN

 

Also, a single-member LLC does not file Form 1065 since the LLC, absent an election to be taxed as a corporation, is treated as a disregarded entity for federal income tax purposes.  Thus, you can file using Home & Business.

 

If, by any chance, you receive a letter from the IRS, you simply need to explain that you erred when you indicated the number of members was more than one.

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