A previous question got me thinking. In the year of conversion from a Schedule C to an LLC I prepare two Schedule C's, one for each period. I think we have to do this because each has it's own id #. What about a Schedule E conversion? Typically there is no id # here other than a Social Security Number.
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If it is a single member LLC that has not elected to be taxed as a corporation, it is a disregarded entity. That means for federal tax purposes, it doesn't exist. The fact that a new EIN was issued half way through the year is irrelevant. You would simply file one Schedule C or one Schedule E and report the current EIN of that business on the tax form.
No different than if a non-LLC Schedule C business decided to obtain an EIN half way through the year because it started to pay employees and file payroll tax returns. -
Remember
Since the LLC is a disregarded entity, remember to merge inner activities between the two entities. In other words, if the Sch C paid rent to the Sch E, it really didn't happen because you cannot rent to yourself. Oh wow! some more tax planning opportunities!
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