Disregarded entity LLC owners now moved to non-community property state - Questions on filing 1065 / K-1s

[Tchelo]

Hi. The wife and I are the owners of an LLC and, since we've lived in Texas (a community property state), we've always treated it as a disregarded entity for Federal Tax purposes, filing under Schedule E (rental properties).

In April, we moved to Tennessee, a non community property state. Questions:

- I suspect we now have to file Form, 1065 and K-1s?

- Do we need to notify the IRS of the change in entity treatment or just simply file the Partnership return?

- Confirm that we must prepare and file form 1065 and K-1s by March 15, then use the K-1 for each member to file 1040 by April 15? 

Thanks!

[pk]

@Tchelo , Assuming that the LLC was organized under Texas laws and only a Husband and Wife as owners, I would leave as they i.e. continue   as a  dis-regarded entity.  The other way i.e. changing to formal partnership achieves nothing and increases paperwork. However, if you now choose to dissolve the Texas LLC and do a new one in Tennessee, then yes perhaps you should consider  a formal partnership.

This my opinion and in keeping with my belief of KISS.  Others may disagree.

[Tchelo]

Hi. The LLC is actually formed in and operates in West Virginia. But because we the owners reside in TX, a community property state, the IRS allows us to file under Schedule E.

Now that we reside in TN, a non community property state, I know that treating the LLC as a disregarded entity is no longer an option. My understanding from several experts is that we must file 1065 and K-1s. So mu question was regarding those filings. Thanks.