From LLC Partnership to LLC Sole owner: What Tax Form ?

Roman1 · ‎January 11, 2019

Hello,

I became Sole owner of a LLC 08/02/2018. It was runned before as LLC Partnership filling every year a 1065 form.

What form should I use for 2018 ?

Should I use a:

- 1065 Form for the Period 1/1/2018 to 8/1/2018

And

- 1040 Form for the Period 8/2/2018 to 12/31/2018

Can I still opt for S corp tax for 2018 and fill a 1120s Form (Knowing that I was drawing money when I wanted as sole owner during the year?), does it worth it ?

Thank you for your advices!

Rustler · ‎January 30, 2019

From what I understand you need to get a new EIN for the sole proprietorship
https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

don't forget to close the partnership with the state, and you need a new state sales tax number for the sole proprietorship too. The partnership needs to pay all sales taxes before you close the partnership registration and ask for a paid in full sales tax account statement for your records.

Yes, you file a final form 1065 for the time period the partnership operated
and
Yes you file a schedule C for the remainder of the year.

yes you can elect to be taxed as an s-corp for the partial year if you meet the requirements, but in addition to this article I strongly suggest you get with a tax accountant
https://watsoncpagroup.com/kb/electing-s-corp-filing-status-retroactive-for-2018_189.html

as to the equity draw vs payroll, that is a tax sticky wicket kind of question and you should get with a tax accountant on that one.

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From LLC Partnership to LLC Sole owner: What Tax Form ?

From LLC Partnership to LLC Sole owner: What Tax Form ?

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