MM991
New Member

Business & farm

I have a similar situation.  The difficulty lies in answering what happened to the prior two-member LLC, which was treated as a partnership.  There is a questionnaire to indicate what happened and the appropriate choice is not there.  The fact is that the other partner retired.  There was no taxable transaction.  The taxpayer is continuing as a single-member LLC and reporting as a disregarded entity on schedule C.  The problem is in when you indicated that it is the final year for the prior two-member LLC, there is no options available to indicate what really happened here.  It is asking if you sold, gifted, etc.  Has anyone run into that?