Change in LLC Status

mrb280 · ‎April 2, 2018

I'm looking for advice on a change in status with my LLC.

When originally formed in 2009, my LLC had 2 partners. At the end of 2017, my partner left the LLC and I am now the sole member. We completed necessary document work to amend the articles of organization to reflect this change in status and they now show I am 100% operational and 100% financial owner. We have a registered EIN on file.

We previously filed state and federal taxes as the LLC and generated a K1 for each of ourselves.

I would like to maintain the LLC status. If it makes a difference, we do pay sales tax to the state for our business.

My question comes in for taxes for next year - will I still file state and federal taxes and generate myself a K1, or will I no longer file state and federal taxes as the business and instead report as self employment on my personal taxes? This is in Pennsylvania if that would make a difference.

Thank you in advance for any advice.

LudwigVan_fan · ‎April 2, 2018

Your state should continue to recognize the LLC.

However, for federal income tax purposes, the partnership has dissolved/liquidated and the final partnership return should reflect that. You need to review the rules and necessary computations for the dissolution of a partnership.

As a single member LLC, for federal income tax purposes, unless you elect to file as corporation, then you file a Sch C, as a disregarded entity. A single member LLC cannot file a Form 1065 - the definition of a partnership means more than one partner.

Here is a link that can lead you to more information. Look on the left side for further links.

https://www.irs.gov/publications/p541

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**

Change in LLC Status

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