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Conversion from S-Corp to LLC Federal EIN Change

MMIC41069
Level 2

I have a client that did a Conversion from S-Corp to LLC.  My question is: Does the LLC need to apply for it's own Federal EIN or keep the same Federal EIN #?

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6 Comments 6
abctax55
Level 15

Was this entity originally an LLC that "elected to be treated as an S-Corp"

"Tax software is no substitute for a professional tax preparer"
MMIC41069
Level 2

No. It's the opposite S-Corp to LLC.

abctax55
Level 15

Then you have a dissolution, with the resultant tax consequences.

"Tax software is no substitute for a professional tax preparer"
PhoebeRoberts
Level 11
Level 11

Short version: if the LLC will continue to be taxed as a corporation (C or S), no new EIN. If it will be taxed as a partnership or disregarded entity, you need a new EIN (and have a taxable event). 

 

https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

Corporations

You will be required to obtain a new EIN if any of the following statements are true.

  • A corporation receives a new charter from the secretary of state.
  • You are a subsidiary of a corporation using the parent's EIN or you become a subsidiary of a corporation.
  • You change to a partnership or a sole proprietorship.
  • A new corporation is created after a statutory merger.

You will not be required to obtain a new EIN if any of the following statements are true.

  • You are a division of a corporation.
  • The surviving corporation uses the existing EIN after a corporate merger.
  • A corporation declares bankruptcy.
  • The corporate name or location changes.
  • A corporation chooses to be taxed as an S corporation.
  • Reorganization of a corporation changes only the identity or place.
  • Conversion at the state level with business structure remaining unchanged.

 

MMIC41069
Level 2

Thank you. 

 

Sorry for the late response. 

Marc

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sjrcpa
Level 15

@MMIC41069 At least you're quicker than the IRS.

Last week I got responses to correspondence sent 2 1/2 years ago.


Ex-AllStar