LLC Ended Mid Year

[rguzman371]

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,

[MercieD1]

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.

[rguzman371]

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,

[MercieD1 · Accepted solution]

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

[MercieD1 · Accepted solution]

To file prepare 2 schedule C's:

1. In Wages and Income, go to Business Income
2. You will have an option to add another Business