Selling partnership

[oceanlovin'ea]

One of my bookkeeping clients is selling her business, a restaurant, that she bought in 2005. She is using a real estate agent for the sale so I am sure that it will be handled correctly.

My question is about ownership of the partnership. If she sells the business, the Federal ID number is in the name of the business. So do I just report to the state of Florida that there is a change in the ownership and give them the new partner's names?

This is different that when she bought it because she bought it from a sole prop(which means the FEIN was in her name). Then she and a friend formed a partnership and we applied for a new FEIN for the partnership.

If the new owners decide after a few months to change the name of the business, will I close the existing partnership and form a new partnership? or can you just do a change of name?

Thanks for your help.

Linda F

[Anarchrist]

>> She is using a real estate agent for the sale so I am sure that it will be handled correctly. <<

Not a wise assumption. What does this real estate agent know about taxes? She probably thinks she knows a lot, but most of it is probably wrong.

If 50% of a partnership changes in a year that partnership is terminated and a new one formed. I doubt the real estate agent is selling a partnership interest. She's listing a building.

A new partnership wouldn't be formed due to a name change. If a partnership changes its name, the "name change" box on the 1065 should be checked.

[oceanlovin'ea]

They are selling the business. Building space is rented. So they are selling the business. One partner has been silent for the last 7 or 8 months. So they are just selling the business.

So my question was that if the new owners continue to operate as "The Diner" do I have to report that the owners of the business have changed? Or do we form a new partnership or whatever business entity they choose?

Thanks

Linda F