My client recently bought a SMLLC and took over everything (all assets, no liability) and kept the same EIN, business name and SMLLC status.  The cut off date is 6/30/22 so my client only wants to report PL and to start new BS starting 7/1/22.  Questions

(1) Is it ok to zero out all carryover BS items and start new?  e.g. R/E and Accumulated Deprecation will be zero and Assets purchased will be entered per FMV at purchase date??

(2) Not sure if 2022 tax filing will be an issue because the new/old owners will use the same EIN and report 1/2 PL on their 1040, individually?   Can the same EIN be use twice on separate 1040 for the same tax year?

(3) Stock or Asset Sales??  There was no stock involved.  Simplify, it was a cash buy-out.  The deal is that the new owner paid a lump sum of cash to buy everything from the old owner but the new owner is only responsible for reporting operation result starting 7/1/22.

This is not a good move but this was done before the client came to me.   I am confused. Any insight is highly appreciated.