DanielV01
Expert Alumni

Business & farm

You need to prepare a Final Partnership return.  This final return should show that one partner is liquidating his/her/it's assets in the partnership and turning the business over to the single member.  You will still need to fulfill your state's requirements for maintaining the LLC (any tax or registration fees that are imposed for the LLC designation), and you do well to advise the IRS of the change of entity (from a partnership to a disregarded entity Sole Proprietorship) associated with the LLC's EIN.  If you do these things, next year the single member may file the business as a disregarded entity sole proprietorship using Schedule C.

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