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LLC - Corp

Forum|Forum|6 years ago
January 14, 2020
8 replies
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I have a company who was set up as LLC did all the paperwork for the state and all but shortly after changed to a Corporation by getting new EIN but did not register with the state and does not have anything changed to the new Corp name. Does the company file a Schedule C (single memeber LLC) or a corporation return being it has the EIN with IRS.

Thanks

ProSeries Professional

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Best answer by qbteachmt

I realize now that you stated this was SMLLC in the original question text.

You seem to have the following:

Your client doesn't seem to have a situation of "changed to." Don't "read ahead" to something that doesn't apply.

Your client, a SMLLC, wanted to form a corporation, and has done the Entity Name and FEIN paperwork. The corporation is not registered for payroll under State or Federal. It's not in business, yet. You are describing a new entity has been created and has not yet operated. There has been no startup for the corporation. It is a "shell."

Your client would file Sched C for 2019. Your client would not have been paid through payroll. Only the employees are paid through payroll.

qbteachmt

Level 15

What about this part? "and does not have anything changed to the new Corp name"

Did they do payroll? A corporation would require that everyone is paid through payroll.

Perhaps the corporation isn't "in force" yet, and has no activity?

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K

kabbabkkgAuthor

Level 5

The corporation has no activity everything payroll and all has been paid through the LLC

Thanks

sjrcpa

Level 15

Did the LLC file an election to be taxed as a corporation?

Or did the LLC do a state law conversion to a corporation?

Or none if the above?

The more I know the more I don’t know.

K

kabbabkkgAuthor

Level 5

Non of the above

qbteachmt

Level 15

It seems this does not apply, then: "and all but shortly after changed to a Corporation"

Someone got an FEIN. Nothing is related to anything else. There has been no "change" but an intent, perhaps.

Was this a single-member LLC or a true partnership? Why did someone obtain the new FEIN?

Don't yell at us; we're volunteers

K

kabbabkkgAuthor

Level 5

They were attempting to change the company to a corporation but never was able to get the funding to set up with the state so they could get a bank account or anything else in the corporation name. All that was done was a new FEIN because the name had to be registered with the state first and the name of the name they were using was not available with the state so they had to modify the name of the company to register with state. Never went all the way through to record the name with Secretary of State as a corporation. There are no bank accounts, no bills or anything else in the corporation name just EIN.

Thanks

qbteachmtAnswer

Level 15

I realize now that you stated this was SMLLC in the original question text.

You seem to have the following:

Your client doesn't seem to have a situation of "changed to." Don't "read ahead" to something that doesn't apply.

Your client, a SMLLC, wanted to form a corporation, and has done the Entity Name and FEIN paperwork. The corporation is not registered for payroll under State or Federal. It's not in business, yet. You are describing a new entity has been created and has not yet operated. There has been no startup for the corporation. It is a "shell."

Your client would file Sched C for 2019. Your client would not have been paid through payroll. Only the employees are paid through payroll.

Don't yell at us; we're volunteers

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