I opened a multimember LLC with my wife and myself as the only members in 2018. We filed taxes for 2018 as a multimember LLC, so Form 1065 and then reported it on our personal taxes.
I am having an EA file my taxes this year (2019), both biz and personal. She said we should change to a sole proprietor and file taxes that way because they are much more simple. I am perfectly good with this but I'm not sure how to do it. The EA said we just need to file taxes as if we are Sole Proprietor and then write a letter the the IRS telling them of this change and that it was effective for the 2019 tax year. Is this correct?
I'm worried I will get fined because they didn't receive the Multi member LLC taxes by March 15th - due to the fact that we will submit taxes as if it were a Sole Prop.
Do I need to fill out Form 8832? Is it retro active for the previous year so that I could file taxes as a Sole Prop I stead of a multi member LLC?
@DianeC958
