Partnership to LLC, keep EIN?

[equinecpa]

I'm thinking that a partnership that becomes an LLC doesn't have to get a new EIN # do they since it is not a change of entity as far as the IRS is concerned?

Is there a form to notify of name change?

Thanks

Carolyn

[ChEAr$]

Legally speaking

I'm thinking that a partnership that becomes an LLC doesn't have to get a new EIN # do they since it is not a change of entity as far as the IRS is concerned?

Is there a form to notify of name change?

Thanks

Carolyn

It is a change of entity. Both types of organizations are different according to all state laws.
True, for IRS purposes the default setting for an LLC is the partnership treatment, but a
new EIN is needed for a new organization. After all, legally speaking, the partnership
dissolves under state law.

Don't forget to make sure appropriate bills of sales are in place for sale of assets to the LLC. The legal beagle should be handling this probably, although I have found myself
doing that in the past.

[oceanlovin'ea]

According to the information provided to me by Beanna Whitlock of NSTP, you do have to apply for an EIN for the new LLC, but for tax purposes you will still continue to use the old EIN when filing a tax return.

Linda

[equinecpa]

OK now I'm totally confused...

According to the information provided to me by Beanna Whitlock of NSTP, you do have to apply for an EIN for the new LLC, but for tax purposes you will still continue to use the old EIN when filing a tax return.

The only thing this to be LLC (LLC to be effective 01/01/09) needs an EIN # for is tax reporting -they have no employees etc. So they apply for a new EIN and use the old for tax reporting? This does not make sense, what will the new one be used for?

Don't forget to make sure appropriate bills of sales are in place for sale of assets to the LLC. The legal beagle should be handling this probably, although I have found myself
doing that in the past.

Is this in fact necessary for TAX purposes (I don't want to involve myself in the LEGAL issues). Is it not just a continuation of the business?

[JG EA]

From the IRS : http://www.irs.gov/businesses/small/...=98011,00.html but I didn't see a date on this. FYI because I'm not sure it completely answers your question.

Partnerships

You will be required to obtain a new EIN if any of the following statements are true.

You incorporate.
Your partnership is taken over by one of the partners and is operated as a sole proprietorship.
You end an old partnership and begin a new one.
You will not be required to obtain a new EIN if any of the following statements are true.

The partnership declares bankruptcy.
The partnership name changes.
You change the location of the partnership or add other locations.
A new partnership is formed as a result of the termination of a partnership under IRC section 708(b)(1)(B).
50 percent or more of the ownership of the partnership (measured by interests in capital and profits) changes hands within a twelve-month period (terminated partnerships under Reg. 301.6109-1).
Limited Liability Company (LLC)

An LLC is a new entity created by state statute. The IRS did not create a new tax classification for the LLC when it was created by the states; instead IRS uses the tax entity classifications it has always had for business taxpayers: corporation, partnership, or sole proprietor. An LLC is always classified by the IRS as one of these types of taxable entities.

[equinecpa]

I think I'll tell them to get a new tax ID # and abandon the old....I'm not sure if they HAVE to but I'm not sure if they don't!

[Bucky]

check out page sb4-13 of small business tax book. Conversion from partnership to LLC is not a sale or exchange. The LLC can continue to use partnerships EIN etc. I would think it would also be in deuxe edition if you have it. pretty sure I saw this in the partnership pub but not in the office right now.

[BOB W]

I would submit it as a name change only on anXXXXXXX.

SEE THIS

http://www.irs.gov/individuals/article/0,,id=148089,00.html