Here are a few comments:
- Since the multi-member LLC requested (and I assume received) an EIN, I would recommend filing an initial and final return. Yes, seems odd to have both in the same year, but not the first time this has occurred.
- You will need to determine the time period for this return (form 1065).
- I would file a state equivalent as well to be consistent.
- Yes, based on your facts, this will be all zeros; assuming no contributions, no purchases of assets, etc.
- The reason I'm suggesting this, is the IRS issued an EIN and somewhere in their system they will be looking for a tax return (and if you file a federal return, states look for their version as well). Issuing the final return will remove that EIN from their records and you have proof that the LLC has been dissolved, liquidated, etc. Send these return certified mail return receipt requested.
- Based on the limited facts, I am assuming that no funds have been contributed to the LLC at any point?
- You note that you "received an equity interest". This indicates that no cash was contributed on your part.
- These type of transactions (profits interest vs capital interest) in general can get tricky and complicated. But given that it appears the business has not really started, should not be an issue.
- But once again, only limited facts provided.
- You, or someone, should check with the Secretary of State as to what may need to be filed to change the multi-member LLC to a single member LLC (assuming that is the entity structure Person A desires).
*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.
