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Level 2

Solved

LLC Ended Mid Year

Forum|Forum|2 years ago
September 27, 2023
1 reply
25 views

Hello,

I ended an LLC midyear and soon after (during the same year) started a sole proprietor business. I had a different EIN for the LLC than I have for my sole proprietorship. I still maintain the sole proprietorship.

Do I have to file 2 tax returns? If not how will the software walk me through the process?

Thank you,

Ask the Experts - Extension - Sept 2023

Best answer by MercieD1

You will file one return with 2 schedule C's. There is a spot on the schedule C where the EIN will appear.

Employee Tax Expert

Employee Tax Expert

You will have to file both returns as they have 2 different EIN's. The question regarding the LLC is if it was originally treated as a Partnership filing a 1065 or if it was a Sole Proprietorship LLC. If it was a Sole Proprietorship LLC, then you would have to prepare 2 schedule C's. If it was a partnership, you would file a final 1065. You would have to allocate the two by the dates before and after the change-over. The software will not do the allocation, you will have to do it either using a bookkeeping software or spreadsheet.

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rguzman371Author

Level 2

Thank you Mercie, much appreciated. The LLC was formed and operated as a sole proprietorship.

If I am understanding correctly I have to file two separate returns and each return will require a Schedule C. (?)

I have one user ID. How do I use the software to file two separate returns for the same year?

Thank you,

Employee Tax Expert

Answer

Employee Tax Expert

You will file one return with 2 schedule C's. There is a spot on the schedule C where the EIN will appear.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer".