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Notifying IRS of change in business structure

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Antoine42

Junior Member
I live in Pennsylvania, and I own a sole prop business.
I am now joining forces with a partner, so I am going to convert my sole prop into an LLC with two members. I am told that this is essentailly a partnership from the IRS' perspective.

My question is - how do I notify the IRS that I am changing my Sole Prop into an LLC? Is there a specific procedure I must follow? I am essentially "closing" the sole prop and I will not be submitting any more Schedule C forms with my taxes.


Thank you for your help!

Anthony
 


LdiJ

Senior Member
I live in Pennsylvania, and I own a sole prop business.
I am now joining forces with a partner, so I am going to convert my sole prop into an LLC with two members. I am told that this is essentailly a partnership from the IRS' perspective.

My question is - how do I notify the IRS that I am changing my Sole Prop into an LLC? Is there a specific procedure I must follow? I am essentially "closing" the sole prop and I will not be submitting any more Schedule C forms with my taxes.


Thank you for your help!

Anthony
You simply register the LLC with the IRS by applied for an EIN number for the LLC. You can do so online.

You may want to do some research on electing to be taxed as an S-corp rather than a partnership. Either is applicable for an LLC, and there can be some advantages, depending on the nature of your business.
 

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