Some comments:
- You don't provide many facts on the transaction.
- Did you have EIN's for each sole proprietorship?
- Did you get a new EIN for the combined proprietorship?
- Did each proprietorship have assets that you were depreciating or were fully depreciated?
- Do you have employees?
- Do you have activity in other states where you have been filing as a nonresident as a result of either proprietorship?
- A sole proprietorship and single member LLC are handled the same on your tax return.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
