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KrisD15
Expert Alumni

Mid-year I switched from a sole proprietorship to an LLC-partnership w/ me and my spouse. Prior years I have filed with Turbo tax self-employed. Can I still use that?

You may need to get a new EIN

 

According to the IRS:

"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."

A gift is a gift, it is not reported by the person that receives the gift and not reported by the person that gives the gift unless the value is over the limit, 15,000 for 2021, in which case the person making the gift files Form 709 "Gift Tax Return"

 

You will need to file Schedule C for the income earned up until you registered the Partnership. 

How the assets transfer is determined by state law. 

 

EIN

 

 

 

 

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Mid-year I switched from a sole proprietorship to an LLC-partnership w/ me and my spouse. Prior years I have filed with Turbo tax self-employed. Can I still use that?

Hi KrisD15, 

 

Thank you for your replay. I should not have posted on this thread, since my situation is a bit different than the OP. I reposted in the Business and Farm section, and got my answers there. My business was a single member LLC converted to a partnership LLC, so need for a new EIN. 

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