Switching Self-employment LLC Owner to Spouse

[TaxNC]

Individual has owned a self-employed business for seven years with equipment being depreciated; was registered in Florida as an LLC under his name; has switched ownership to spouse; she has changed LLC registered agent to her name. Joint tax return is being filed.
I am verifying that the spouse (new owner) has to apply for her own EIN to be shown on tax returns going forward?
Do you check this box on Schedule C? "If you started or acquired this business during 2024, check here."
When applying for a new EIN do you answer No or Yes to "Purchased going business?

Also, just continue depreciating the business equipment as has been done?

[terryats]

Unless you have employees you do not need an EIN (use your SS). If you use independent contractors get an EIN to only put on the 1099's you send the contractors.

from IRS. "If you are a sole proprietor who conducts business as a limited liability company (LLC), you do not need a separate EIN for the LLC, unless you are required to file employment or excise tax returns. A limited liability company is an entity formed under state law by filing articles of organization as an LLC. An LLC owned by one individual is automatically treated as a sole proprietorship for federal income tax purposes (referred to as an entity to be disregarded as separate from its owner). Report the business activities of the LLC on your Form 1040 using a Schedule C, Schedule C-EZ or Schedule F."

See Link: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.irs.gov/pub/irs-pdf/p1635.pdf

[rbynaker]

So he stopped doing the work and she started doing the work?

[TaxNC]

Yes, spouse took over doing the work.

[TaxNC]

And most or all banks in Florida require an EIN to open a business account.

[Snaggletooth]

If it was an LLC, then it had to be something else to the IRS. If it was filed as a C Corp or S Corp, the solution is simple: just change ownership and keep the entity and FEIN the same.

If a partnership, then the ownership was split, and all that is necessary is to increase the wife share of ownership. Keep the entity and FEIN the same.

If it was a sole proprietor LLC, then the conversation is relevant. If no sole proprietor, I would recommend the above.