SMLLC. right now treated as a Schedule C.
Owner wants to bring in a partner with ownership rights. I was under the impression that form 2553 would not help in this case since the current legal entity is owned by one person. I may be wrong on this but wouldn't a new company have to be set up.. say a MMLC and file form 2553 or can we use the existing structure. In either case we would not need 8832, right? Thank you.
"Owner wants to bring in a partner with ownership rights"
New entity, new FEIN.
Or, they can form an S Corp directly. Or a C Corp.
Remember that LLC (multi-member partnership or entity) is a State issue. That means applicable State legal guidance should be sought.
Being any sort of corporation or staying as an LLC (or PLLC or whatever might apply in their State for their activity) should be done with an understanding of the intended operations. We've seen lots of bad guidance on this topic.
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