1065 loses a member

[VondenhoganBeaverHausen]

A 1065 had two members and one has been bought out.

Can we keep the same tax ID number and just file a schedule c?

Or, do we need a new tax id and close down the old 1065 LLC and mark it final?

Thanks in advance to the 1065 experts our there.

Antonio

[JoshinNC]

the partnership ceases to exist

if there are not any partners, or a substantial change in partners, then the partnership ceases to exist

[Armando Beaujolais]

A 1065 had two members and one has been bought out.

Can we keep the same tax ID number and just file a schedule c?

Or, do we need a new tax id and close down the old 1065 LLC and mark it final?

Thanks in advance to the 1065 experts our there.

Antonio

Check out TTB, page 2-12. It has the tax effects if an owner sells an entire interest in an LLC (taxed as a partnership) to the other owner. The partnership terminates. The selling partner treats the transaction as a sale of a partnership interest. For the purchasing partner, the partnership is deemed to have made a liquidating distributions of all assets to the partners, and the purchasing partner is treated as acquiring the assets.