Started a multi-member LLC two years ago with 80/20 ownership. EIN has company name on line 1 but is addressed to me as member.
I (the 20% owner) am now resigning. The other owner (currently 80%) is going to take over 100% of the business.
My gut is that he needs a new EIN as it’ll be a LLC taxed as a partnership (we get K1s) switching to an LLC taxed as a sole proprietor.
I had hoped there might be a workaround as opening new bank accounts, credit cards, etc. will be annoying for him. So figured I’d ask!
Only thing I can think of is doing 2553 to elect SCORP tax status but maybe that wouldn’t work.
