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2018geogeo
Returning Member

Do I need a new EIN?

Hello!

I was a sole proprietorship with no employees and had an EIN. I filed for a LLC with my spouse in Texas. We will be treated as a single-member llc. Do I need to get a new EIN?

 

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1 Reply
KarenL
Employee Tax Expert

Do I need a new EIN?

Yes, you will need a new EIN.  However, you cannot be treated as a Single Member LLC if you are both members of the LLC.  If you and your spouse are both members, you can file as a Partnership filing a Form 1065 (using TurboTax Business)  Then, the Partnership will create Schedule K-1 forms for you both to report on your personal tax return.   

 

Or, you can file as a Qualified Joint Venture since Texas is a Community Property State.  If you make that election, you will file two Schedule C forms and split the income,deductions, etc.  You can read more details at this link.   

 

Note: This election to file as a Qualified Joint Venture is only allowed when the LLC is owned only by two spouses and it is in a Community Property state.

 

"A business owned and operated by the spouses through a limited liability company does not qualify for the election

Only businesses that are owned and operated by spouses as co-owners (and not in the name of a state law entity) qualify for the election. See Rev. Proc. 2002-69, 2002-2 C.B. 831, for special rules applicable to husband and wife state law entities in community property states."

 

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