cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Roman1
Level 1

From LLC Partnership to LLC Sole owner: What Tax Form ?

Hello, 

 

I became Sole owner of a LLC 08/02/2018. It was runned before as LLC Partnership filling every year a 1065 form.

 

What form should I use for 2018 ? 

Should I use a:

- 1065 Form for the Period 1/1/2018 to 8/1/2018

And

- 1040 Form for the Period 8/2/2018 to 12/31/2018 

 

Can I still opt for S corp tax for 2018 and fill a 1120s Form (Knowing that I was drawing money when I wanted as sole owner during the year?), does it worth it ? 

 

Thank you for your advices!

1 Comment 1
Rustler
Level 15

From LLC Partnership to LLC Sole owner: What Tax Form ?

From what I understand you need to get  a new EIN for the sole proprietorship
https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

don't forget to close the partnership with the state, and you need a new state sales tax number for the sole proprietorship too.  The partnership needs to pay all sales taxes before you close the partnership registration and ask for a paid in full sales tax account statement for your records.

Yes, you file a final form 1065 for the time period the partnership operated
and
Yes you file a schedule C for the remainder of the year.

yes you can elect to be taxed as an s-corp for the partial year if you meet the requirements, but in addition to this article I strongly suggest you get with a tax accountant
https://watsoncpagroup.com/kb/electing-s-corp-filing-status-retroactive-for-2018_189.html

as to the equity draw vs payroll, that is a tax sticky wicket kind of question and you should get with a tax accountant on that one.

Sign in now for personalized help
See articles customized for your product and join our large community of QuickBooks users.

Need to get in touch?

Contact us