Hi Carl,
I had a question pertaining to your comment stating:
"In the community property states of Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin if you have a multi-member LLC where there are only two owners, those two owners are legally married to each other, and those two owners will be filing a joint 1040 tax return, they have the option of splitting all business income and expenses down the middle and each partner reporting their share of the business income/expenses on a separate SCH C for each tax filer on the joint return. That means your joint 1040 return will have two SCH C’s included with it – one for each owner. But this can present its own problems in the event of divorce, or separation. The issues can become even more compounded upon the death of one of the owners. If that deceased owner’s will does not pass all assets to the surviving partner, then that surviving partner can find themselves in tax hell, not to mention the problems that can arise with the “new” owner or owners."
I am in Texas, and I have a family member that owns a multi-member LLC, with their spouse. However, their spouse has passed away, and she is the one designated to inherit his shares of the company. My question is will she need to obtain a new EIN for the LLC or can she just change the way she files the taxes?
Secondary to that I was wondering what happens in the following scenario: "A", LLC is a business operating in Texas, it is a partnership between "B", LLC and "C", LLC. "C", LLC has decided to turn over it's shares in "A", LLC to "B", LLC. There is no exchange of money, its more of an assumption of shares and "C", LLC leaves the business. Now, "A", LLC is now owned solely by "B", LLC, is "A" required to get a new EIN number or can "A", LLC continue to operate with its existing EIN, and just change its tax filing from a 1065 to 1120 since it is owned by an LLC and not by an individual?
I hope those weren't too difficult to follow. Any knowledge you wish to share would be great. TIA!
