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mlynnbb1969
Returning Member

LLC member changes, name changes - is it a new business?

My husband had a no-income single-member LLC starting in 2020 in Maryland, before we married, I'll call LLC 1. We married in 2021, and his Schedule C was included in our 2021 and 2022 joint filings. The losses were well under $1K. These first two years he was trying to get a consulting business up & running.

 

In January 2023, he reorganized in Maryland, changed the name from LLC 1 to LLC 2, and I was added as a member/officer. I just found out that he did not update EIN with the IRS to reflect said change, and I really can't tell from the IRS website whether we fall under the "new FEIN" requirements. 

 

To complicate things, I didn't know that we needed to file a separate business return for 2023. We have no employees and no income. We're just getting the new venture up & running. We filed a Schedule C in our 2023 joint filing, but with LLC 2 as the business name and his name as the proprietor, with just a little over $2K in losses. 

 

All this background leads to this issue. TurboTax Business/Desktop is asking the date that LLC 2 started doing business. Do I use the date he established LLC 1 under the old name, or the date he reorganized under LLC2 and became a multiple-member LLC? Edited to add: We moved Labor Day 2023 from MD to FL. We dissolved the MD LLC effective 12/31/2023 and established in FL as of 1/1/2024. Not sure if it matters.

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1 Reply
PatriciaV
Expert Alumni

LLC member changes, name changes - is it a new business?

Yes, as a multi-member LLC, the corporation is required to file a separate business return. If you haven't elected to be treated as a corporation, you would file Form 1065, available in TurboTax Business CD/Download.

 

The multi-member LLC is a separate entity that began on the incorporation date on the Articles of Incorporation. Since you terminated that Maryland LLC in 2023, this will be the final year for both the federal and Maryland LLC returns. Because you incorporated a new LLC in another state, you'll file the initial 1065 and Florida LLC returns for the new Florida LLC in 2024.

 

You may need to amend your 2023 individual 1040 return to remove the Schedule C for the multi-member LLC and add a final Schedule C for the SMLLC. 

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