Updating your EIN to reflect a Single Member LLC

The LLC I have was initially started with a friend. Naturally, sometimes things change, and my friend decided to leave the LLC in order to pursue other business opportunities with his family. Thankfully we parted on good terms and our friendship remains fully intact.

The only issue is that the LLC was filed as a Partnership when we applied for an EIN (Employer Identification Number), and that’s no longer the case. At this point I could’ve changed my LLC into a sole proprietorship but 1) that would require me to get a new EIN and 2) I already went through all the trouble of setting up an LLC in the first place, so I had to figure out how to update my EIN to show that I was now a single member LLC.

Side note: Arizona allows single member LLC’s but I’m not sure if this is true for every state, so check with your local corporation commission to see if that’s an option before you remove all members from your LLC. Also, there may be additional steps involved to remove/change a Statutory Agent if he/she is one of the members leaving the LLC.

(Take a deep breath…) I would think that it’s commonplace for LLC’s to go from multi-member partnerships to single member run and thus the IRS website would have instructions on how to update your EIN to reflect this change, yet I guess it’s not commonplace enough because there’s no such info to be found. (Now exhale) After spending an hour on the phone (I called 800.829.4933 option 1) trying to figure out what to do, I was shown the way by an IRS agent who I could only guess was a drill sergeant at one point in her life by the intonation in her voice. Here’s the information I was given:

To change your EIN status from a Partnership to a Single Member LLC, you must write or FAX a letter to the IRS facility where you originally filed your EIN and include the following…

  1. Include the legal name of the LLC.
  2. Include your position in the LLC. (Here I just stated Statutory Agent & Single Member)
  3. Include the address of your LLC.
  4. Include a copy(s) of your Articles of Amendment with the change(s) to your LLC.
  5. Include an explanation that you went from a multi-member LLC to a single member LLC and you are the only member in the LLC now.
  6. And address the coversheet (FAX) and/or letter to “Attention: EIN Operation”
  7. By the way, I’ve shared the letter I sent to the IRS in the comments below &mdash click here to see it.

I was also told that it’s better to FAX the letter and documents instead of mailing them since it will take an average of 4 days via FAX versus 2 weeks via snail mail to process. This is the address and the corresponding FAX for the location that I originally received my EIN from:

Department of the Treasury
Internal Revenue Service
Philadelphia, PA 19255
FAX Number: 859.669.5760

Call 800.829.4933 option 1 if you’re unsure of what address or FAX number to use, it should be on the letter that the IRS sent you when they assigned your EIN.

FYI: In this scenario, you will be taxed as if you were a sole proprietorship, yet you will still have the legal benefits of a Limited Liability Corporation.

Well I hope this information might be useful if you’re in a similar situation, and although it’s been a while since I filed for an LLC, feel free to leave a comment with any questions you may have!

Sincerely,
The Closet Entrepreneur

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91 Comments

  1. RN

    I need to change a sole prop EIN to a corporation EIN. Do i follow the same procedure? Do you know of an online or email way to do this?

  2. TOMAS

    RN, if you’re a sole proprietor (not a single member LLC, but an actual sole proprietor) and you are incorporating, then you will need to get a new EIN according to the IRS: here’s the link -> Do You Need a New EIN

    You can apply for an EIN online by going here -> EIN – How to Apply

    Again, I’m not an accountant so I would strongly suggest you call the 1-800 number I list in the post just to be sure.

    :)

  3. Eric

    I was wondering if IRS Philly received and processed your fax request? I have been going on with the IRS since December trying to get them to update a name change to a LLC. Twice an IRS rep gave me the wrong information and I have sent my documents to the wrong IRS location. I spoke to an IRS rep tonight who directed me to mail everything again this time to Philadelphia. I asked if I could fax it and he said no… please tell me they processed your faxed-in request! I appreciate your help!

  4. Dr Michael

    Thank you for that information – very helpful

  5. NST

    Myself and 2 friends formed an LLC, some years ago. But now due to a marriage, I’ve decided leave the LLC. How do I let the IRS know that I’m no longer a part of the LLC

  6. TOMAS

    @NST – I would recommend giving the IRS a call at 1-800-829-0115 to see what is necessary. From my understanding, you are not required to file taxes if your partnership with the LLC is inactive and you are not receiving an income from the company. Be sure that your friends have filed Articles of Amendment to remove you from the LLC, and note the date that the Articles of Amendment were approved and your name was removed from the LLC.

  7. Rigo

    My father just formed a LLC and he already has a EIN number. Since the LLC has a company name and on the EIN shows his name. my question is: IF THERE MIGHT BE ANY PROBLEMS IF HE USES THE SAME “EIN” THAT IS UNDER HIS PERSONAL NAME AND NOT UNDER THE NEW LLC CO. NAME. Should I get a new EIN number for the new name of the copany or will it cover it, since the owner of the co. is the same owner of the new LLC’s company… I don’t want to have any legal problems if in any case the same EIN number will not cover the new formed business… Please Help!

  8. TOMAS

    @Rigo – How did your father initially obtain his EIN? Did he file for a Sole Proprietorship or Partnership?

  9. Marisol

    I formed an LLC along with another person, I gave my info to get the EIN he didn’t…he started the company and now I need out he’s mismanaging everything and being “deceptive”. How can I get out of this without him ruining my life?

  10. Rigo

    yes, my father just formed a LLC “Sole Proprietorship”!He is conducting his own business as an LLC. He had a personal EIN number under his own name, and now that he formed a LLC, he is using his old EIN number. I’m just worried if it will cover his new LLC since the name is under a company name and not a personal name…

  11. TOMAS

    @Rigo – According to IRS publication 1635 “Understanding Your EIN”, it states that if you are a sole proprietor who conducts business as an LLC, then you do not need a separate EIN for the LLC. Again, I strongly recommend that you call the 1-800 number I list in the post and verify with the IRS as I’m definitely not an EIN expert by any means. :)

    @Marisol – I’m really sorry to hear about the issues you’re having. Please keep in mind that an EIN is a number used by the IRS to identify businesses that are required to file various business tax returns, so I’m not sure that anything can be done to terminate the EIN unless the business no longer exists or you’ve decided to leave the LLC (which sounds like something you might consider). Terminating an LLC requires that you submit Articles of Dissolution to your state, leaving the LLC depends on the operating agreement that you created for your LLC (I’m hoping you created one). Either way, once the LLC is terminated or you’ve left, then you will have to contact the IRS and have the EIN removed from your name. Again, I’m not a lawyer, so please-please consult professional advice and help.

  12. Marisol

    Unfortunately no operating agreement was written or filed at the time. I have since amended the articles to reflect my removal but can I still be held liable for overdrawn accounts? How do I find out if and how much credit has been issued to the company? And, finally what is the process to remove my name from the EIN if he never gave his particulars…

  13. Sara

    We have a frachise of Window World, my boss just purchased 3 locations from his sister and brother in law. He wants to update his EIN to reflect his name instead of hers! What should he do? Follow the same procedures as above? Or try something new?

  14. TOMAS

    @ Marisol – I would strongly recommend calling the 1-800 number I’ve listed in the post to get the process for clearing yourself of the EIN. If you’ve been removed from the LLC and are not doing business, then you shouldn’t have a need for an EIN (I’m assuming this is the case). You should also seek the help of a good accountant and share your concerns as they should *hopefully* have a decent understanding of the system. Also, if the EIN was used to open up a business account for your company, then you should hopefully still have access to this account information.

    @ Sara – I would definitely call the 1-800 number that I include in the post, the IRS has various situations which spell out whether you may or may not need to get a new EIN altogether.

  15. Tracey

    My husband & I went through a real estate course that recommended setting up an LLC to do real estate transactions. Rather than hiring an attorney, I did the LLC stuff online (PA). I am really not doing anything with the LLC, this is my hubby’s baby. I was told that multi-member LLC’s were better – tax wise – than single-member LLC’s, which is the only reason I put my name on it. however, I have pretty poor credit. Now when my husband tries to purchase and/or refinance properties, the banks are taking my credit into account since my name is on the LLC. Would this change if I changed the Operating Agreement (which the banks required) to say that I am a 1% owner/member? Should I just remove my name from the LLC?

    HELP! :) thanks.

  16. TOMAS

    @ Tracey – My best advice to you is to consult the loan specialist that is working on your loan to see if being a 1% owner/member or a 50% owner/member makes a difference to the bank. Just remember that removing your name from the LLC takes time since you will have to file articles of amendment with your state’s business division, and I’m not sure if you want to put your real estate endeavors on hold while that takes place.

  17. bobfan

    Great stuff now hopefully help for me. HAve a car lot in PA and this guy really roped me in. I am the sole member and he is a non member manager putting me at full risk. In order to dissolve there must be a 100% vote by members and managers. He dont want me out as he needs my credit so how the heck do I get out of this mess? I just want to walk away and take care of any debts but be off everything that matters.

  18. I’ve had an LLC since 2004. About 6 months ago my husband and I divorced and I legally changed back to my maiden name. Now I need to change my EIN to relect this change, yet I cannot find any forms or information of any sort to assist. Can you help?? Thanks.

  19. MJ

    Many years ago I obtained an EIN from the IRS with the hope of starting my own business. Nothing happened with it. I never used the number and forgot I had it (which means I never filed taxes because nothing was ever done with the number). I’ve heard that if an EIN is never used it eventually gets deleted due to no activity. Is this true? If not, what steps to I have to take to be sure I’m not paying taxes out of my nose for a business that never existed?

    Thank you!

  20. TOMAS

    @ Gisele – I would recommend calling (800) 829-4933, it should be an easy fix if all you’re changing is your name. Be sure to keep us posted!

    @ MJ – About the EIN getting canceled due to inactivity, I wouldn’t count on it unless you’ve heard otherwise from someone at the IRS. Call (800) 829-4933 to see if your EIN is still active, chances are they’ll probably refer you to their lengthy checklist for closing a business HERE. Also, I don’t think you have to pay taxes if your business never made a cent. Please keep us in the loop on what you find!

  21. Jay

    Hi

    It was an interesting read. However, in my case it is exactly the mirror image of this situation.

    I used one of the online websites to incorporate my LLC in Delaware with three members. It was done exactly that way. However when the registration company went for EIN registration, they applied it as a SINGLE MEMBER EIN with just the name of the registered agent in it. So as far as IRS knows, the company and EIN has that registered agents name and it is a single member LLC.

    What should be done to change it to MULTI-MEMBER LLC with my name being reflected on the IRS account. I have SSN, but the other two members dont have it as well as they are non-resident aliens who live outside U.S.

    Help will be really appreciated!

    Best Regards
    Jay

  22. Sumit Agarwal

    Hi,

    I have formed the LLC with my wife. I didn’t have any income in 2006, I filed 1065 in 2007. I did consulting in 2007 and get business in 2007. I want to file schedule C instead of 1065.
    What do i need to do?

    Any help is very much appreciated.

    Regards
    Sumit Agarwal

  23. TOMAS

    @Sumit Agarwal: Unfortunately I’m just a lowly Engineer and my knowledge on the inner workings of the IRS are minimal, actually I just let me accountant handle it. Unless someone on here knows otherwise, I would advise that your safest bet is calling the IRS or getting help from a professional accountant.

  24. Austin

    I need to change my Buisness name but already recieved a EIN # what do I do, and is it leagl to Live and have my company building in AL while working In GA for the buisness? please contact me.

  25. TOMAS

    @Austin, if you are a Sole Proprietor, Corporation, or Partnership then there is a very good chance that you won’t need to get a new EIN to change your name – all you have to do is follow the instructions on the IRS site here: IRS – Business Name Change

    As for the legality of your work setup, that’s beyond the scope of my knowledge; maybe someone else here may be able to comment.

  26. “I was told that multi-member LLC’s were better – tax wise – than single-member LLC’s, which is the only reason I put my name on it. “>>>Is this true? We’re in the process of applying for an EIN and would like to find what would be better (tax-wise) for my husband and I: multi-member or single-member LLC. Any help would be much appreciated!

  27. Kelly

    My business partner is retiring and leaving our two person Arizona LLC. It’s May 23 and she wants her last day to be June 30, 2008. I have found blank Amendement to articles of Organization. Is she running out of time to file these or should it be my responsibility due to I’m the one continuing with the business? Do I need to file an amenment fot he Operating Agreement too if nothing will change with our business except her leaving?

  28. TOMAS

    @Trish – I’ll have to forward your question to a friend I know that’s familiar with the tax codes, but I’m thinking that you’ll have to deal with more paperwork if you’re taxed as a partnership (since all income, gains, losses, deductions, and credits are divided based on each spouse’s interest) and less paperwork if -for example- your husband files for the business on his tax return. In the end though, I think you’ll still receive the same treatment tax wise whether you go multi or single member. The only benefit with going with a multi-member scenario is having social security earnings accounted for for both you and your husband. Again, I’m not a tax professional so I may be very-very wrong so I’ll be sure to relay any info my tax loving friend may offer! :)

    @Kelly – If I were you, I would file Articles of Amendment to indicate that you will be the only member of your LLC – you wouldn’t want to leave something so important to someone else would you? :) As for the Operating Agreement, was it legalized or was it something you and your partner drafted up and keep somewhere in the office? If it’s not a legalized document, then you don’t have to do anything special to make changes to it (from my understanding).

  29. kevin

    This should help.

  30. Manjula

    When we applied for EIN for my friend’s LLC, we used my name and information to obtain EIN as at that time I was planning to become a member of the LLC. But now I changed my mind and want to remove my name from EIN and add my friend’s name who runs the business. How do I do that? Do you have a sample correspondance letter to IRS?

  31. TOMAS

    @Manjula – I was in a similar situation. My LLC’s EIN was applied for in the name of my friend, and I had to send in a letter to the IRS telling them that he had left the LLC and my name was to take the place of his on the EIN. I would recommend that your LLC’s Statutory Agent (or whoever is now in charge) draft a letter to the IRS telling them to remove your name – this is the letter I used – hope it helps!

    —————————————-

    Name
    Address
    Telephone
    Email

    Today’s Date
    Internal Revenue Service
    Attention: EIN Operation
    Philadelphia, PA 19255

    To Whom It May Concern:

    This letter is in regards to EIN# XX-XXXXXXX which is assigned to:

    Your LLC’s Name
    Your LLC’s Address

    My name is _________ and I am _________(company name) LLC’s Statutory Agent.

    In _________ (date), Articles of Amendment were filed to remove member _________(members name) from the LLC. I have attached copies of the approved Articles of Amendment for reference.

    I would like to keep the existing EIN and have it updated by removing _________’s name from your records and adding mine.

    Please feel free to contact me via phone or email if you have any questions regarding my request.

    Sincerely,

    Name

  32. Manjula

    Thank you very much!

  33. Renee

    Hi,

    Have a couple of questions…

    1.We are in the process of changing our name and we have already obtained an EIN number BUT we have not used it for anything as of yet. Is it easier for us to dissolve this number and create a new EIN? The reason being we really need to get started with the new name and it may take to long for them to change the name, prior to us being able to use the EIN # we currently have.

    2. This is a husband and wife venture that we are doing as a partnership, in our state [SC] you are not required to file [corporation forms] with the state for partnership. So according to IRS [website]you have to include state approved name change ammendment, along with your request for a name change. What do we do?

    Thanks for any help you can provide….

  34. TOMAS

    @Renee – I honestly wouldn’t know if dissolving your current EIN or just changing your business name is the path of least resistance in your situation, I’ve only changed my business’ name on my EIN. Also, the only time I remember using my EIN was during tax time and setting up a business baking account, so unless you’re planning on doing either of those immediately then I would recommend just submitting an EIN name change to the IRS and keep the EIN you currently have.

    As for your second question, I would recommend calling the IRS (the phone number is in the post) and asking what to do in your particular situation. Since you’re a husband and wife venture, do you file your respective taxes as sole proprietors on each others Schedule C? If that’s the case, you may just be able to write to the IRS and ask for a business name change on your EIN sans the Articles of Amendment, but I would double check with them to be sure.

  35. Kat

    Hi there — I work for a small law firm in Florida and we have a client who is forming an LLC (multi-member). The person applying for the FEIN is a non-resident alien. According to the IRS, he must have a ITIN before applying for the FEIN for his LLC. I have form W-7 for him to apply for the ITIN but it says he has to either attach an Income Tax Return (which he doesn’t have yet because the LLC does not have a FEIN yet) or he has to be one of the Exceptions (which he isn’t). I have spent hours on the phone with the IRS and I can’t seem to get a straight anwer from anyone. Is there a simple answer to this question. Can a foreigner come here and set up a US LLC and apply for a FEIN? It seems like the chicken before the egg to me. HELP!!

  36. Vic

    I have a issue with trying to delete 2 members of the llc that was filed as a partnership.
    How do I go about deleting the 2 partners and adding another.
    Would I need to change my EIN?
    What form do I need ?

  37. @Vic – Whose name and information is on the EIN? If it is yours, then it doesn’t sound like you need to bother with the IRS unless the name on the EIN is one of the two members that you’re trying to delete. Check out the comments above if you need to change the name on the EIN.

    Else, adding and removing members of your LLC should be handled by the same local government agency where you filed your LLC documents. In Phoenix (AZ), it’s the Arizona Corporate Commissions but I’m not sure what it would be in your neck of the woods. You will basically have to amend your articles of incorporation, and they should be able to help you with that.

  38. @Kat – I’ve never dealt with non-resident related EINs, but I hope you’re able to find an answer soon! :)

  39. Steve R

    I am considering closing my LLC formed in [MD] due to the annual cost of $300/yr to file a personal property tax form. I have a rental property in AZ and would like to form an LLC for that property since it is a one time fee of $50. I live in Maryland and have a statutory agent in AZ so I would not have to file a Foreign Registered LLC. Do I need to notify the IRS to terminated my EIN for the MD LLC? If so, do I reapply for the EIN to show the newly formed LLC in [AZ]? I will not be changing the name of the LLC. Thank you in advance.

  40. @Steve R – I’m not sure if forming a new LLC in Arizona with the same name will require a new EIN; I would definitely give the IRS or Richard Keyt a call. ;)

  41. MDC

    I formed a LLC with a former friend back in Sept 2004. We never did any business, never made a cent and I don’t think we ever filed our taxes either. Since that time he moved far away, and we lost contact with each other. Every attempt I have made to contact him since then have gone unanswered. The LLC was filed under his name, and was registered to him. In the operating agreement I am listed as 50% partner. I do have his email address, and I did send him my formal resignation letter but heard no response from him, based on the operating agreement that we signed, any member can resign at any time with a written letter. Some Questions I have are:
    Is my name registered on the EIN number, since it was filed under his name?
    Do I have to contact the IRS to remove my name?
    Can I remove my name from the EIN without being able to contact him?
    Thanks in advance

  42. @MDC – Most likely your name isn’t on the EIN, but I would make it a priority to call the IRS and check. If your name is on the EIN, then the agent should be able to tell you what needs to be done to get it removed.

    By the way, the IRS charges a penalty for not filing your taxes on time even if your business didn’t make any money.

    Also, I wouldn’t leave it up to your business partner to remove your name from the LLC. Unless your Operating Agreement states otherwise, I would head to your state’s corporation division and file an article of amendment to have yourself removed from the LLC.

  43. Jennifer Hendricks

    I was pushed into adding my name as a member on a LLC and now the person and I are no longer on talking terms and I need to know how I can legally remove my name from the LLC where I am not legally repsonsible for any debts incurred to the LLC? Please help me.
    I was not even aware that he and his wife were actively doing business under that LLC. He went down and added her name and her address as the legal address of the LLC and I was not even aware they had done that since my address was currently being used as the legal LLC address.

  44. @Jennifer Hendricks – I would definitely get an opinion from a legal professional who is familiar with LLC law—Andrew Flusche is one such person.

    I would guess that it all really comes down to what was agreed upon in your Articles of Organization, but again this is something I would ask advice on from someone who is better qualified than I.

    :)

  45. If a LLC was formed and things have gone bad and there is no operating agreement, is there common law practices to use if a 50% member wants to leave the LLC and take her assets with her. I would like to leave and get a new FIN, start a new LLC and use my assets to stay in business.

  46. @Pat Mohan – Have you tried talking with the person you formed the LLC with and coming to an agreement? I’m not familiar with any common law practices for LLCs and would recommend consulting with a lawyer if possible.

  47. BJA

    I am forming an LLC with my partner. The business will be owned and operated by just the two of us, no employees. How do we sign any business correspondance?

  48. @BJA – That’s a good question—I don’t have a solid answer but I’m assuming that since you’re signing on behalf of the LLC, you could do something similar to what they do for other corporations. For example:

    Your Company Name, LLC
    By: (your signature)
    (your corporate title)

    Hope that helps! ;)

  49. Mike

    I am attempting to transfer my 1% ownership of a two-member LLC to the other member, thereby leaving him with full ownership of the LLC. I just spoke to an agent at the IRS and she claimed that the other partner would now need to dissolve the current, multi-member LLC and re-organize under a new, single-member LLC.

    I’m wondering if I was simply the recipient of bad advice. Or perhaps this is now the policy of the IRS?

    Has anyone had any recent success of switching from multi- to single-member status using the ‘letter’ method described by Tomas?

    Thanks,
    Mike

  50. @Mike – I haven’t had a chance to investigate whether or not anything has changed with regard to going from a multi-member LLC down to a single-member LLC, but have had two individuals at the IRS tell me two different things before I finally got the information I was looking for.

    Also, be sure to call the number listed on your EIN documents and speak with someone who handles EIN specific requests for the best results (that is if you haven’t done so already).

  51. Mike

    Thanks Tomas- I called again to the IRS and was told the method you’ve described above ‘would probably be fine’.

  52. @Mike – That’s good to hear, and hope it works out for you.

  53. Hello there my question is my husband and I form an LLC and we use my socail security to apply for EIN and IRS issue an EIN #.
    I want out of the LLC is that mean he has to apply again for the new EIN # being I used my social security and I will be exiting out. Also since its an LLC if I don’t inform IRS that I know longer part of the business will they come after me in the future since it was under my social please advice?

    THanks,
    Jolina

  54. Shalakay

    Is this neccessary when changing from and single member LLC to a multi member LLC?

  55. Shawn

    Tomas,

    Did you recieve any kind of fax response or other correspondence from the IRS to confirm the change request was accepted?

    Thanks,
    Shawn

  56. Shannon

    I am trying to change one owner to another president of the LLC Company. I would then need to update my EIN#…correct? Where do I start to change the owners of the LLC?

  57. Duong

    Hi Tomas,

    I plan to send a converting from partnership to sole proprietorship letter to IRS. I live in Alameda county of California. The IRS lady told me to send letter to IRS, Ogden in Utah, but I check the IRS website showing the address in Fresno, CA.

    Should I send the letter to Ogden, Utah?

    Thanks a lot in advance.

    Regards,

    Duong.

  58. Kay

    I applied for an EIN online, and when they asked for which state I was going to file for an LLC in, I put WY, which is where i live. I since realized that I should form an LLC in CO, since thats my place of business. Can I just file for an LLC in CO, or do I have to file in WY, then as foreign in CO? thanks.

  59. Jim

    Hello Tomas,
    I kinda messed up when I filed my business with the state, I had read your thread on changing over to a single member, but I need to know where I find the Articles of Amendment in order to sisend a copy.
    Thankyou Jim

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  61. Melissa

    I am in the same situation as the author. So, what did you put in the Amendment of Articles of Organization? The state of Nevada provides a blank field with the header:
    “The articles have been amended as follows: (provide article numbers, if available)*”
    I assume that I reference the original Articles, number 5, that specifies the name and address of each manager and managing member. Originally, there were two. So, in the Amendment, do I state the removal of member 2? Or do I simple state the existing member 1. I am probably over-thinking this, but an example of how you specified this would be appreciated.

  62. Pradumna Shahi

    Hello there
    I recently faxed IRS a letter asking them to correct my business name. Somehow the spelling of our business name was entered wrong (should be Capital but was spelled Captal). I haven’t heard back from IRS and don’t know how long it takes. Any idea how long does it take on average to hear back from IRS with a new EIN?
    Thanks
    Pradumna

  63. Brian

    I just wanted to say thanks for the information. I was having problems with this issue. Where can I go to understand the tax ramifications of having the other member leave.

  64. Sharon Johnson

    My father has owned a sole proprietorship for over 30 years and is in failing health. The problem is, my younger brother who has been helping him with the contract has been pressuring him to transfer the company into his name but my dad wants to do that. 1) Can a sole proprietorship in Richmond, VA be transferred from one person to another? 2) If we were able to do it, will that absolve my father of any liability even on one contract between him and a large corporation that is not slated to end until 12/1/12? 3) Would that company be able to allow my brother to take over the contract or do they have to put it up for rebid? Any help will be greatly appreciated. Thanks!

  65. richard

    First of all I just want to say thank you for this very helpful blog you have going here, but now after reading im still confused. Im wanting to turn my small business into an LLC I already have an EIN that I obtained years ago for a car wash that I used to do and my question is that now that I have a completely different business would I need to apply for a new EIN? Also my current EIN is linked to my ssn and that is going to hurt me if I keep opening credit accts. I would like to have an EIN where I could use instead of my ssn for credit purposes, is there any way of doing this? thank you

  66. Thank you so much for posting this information. It has helped me a lot with my conversion process.

  67. Mercedes

    I started my own business a couple of years ago, I had no clue where to start so I did the following; File the Articles of Organization under Spanish For Fun with ony (I) as an owner, did not get a business lic until after a year when my friend decided to become a partner, we then file for an EIN and were doing business for two months, she got paid for those two months but then she decided to leave the LLC, when I filed for the EIN the company names was filed as a corporation. I did what the irs asked me to do, send a letter changing it from a corporation to sole propiator and delete my friends name. Now I am confused which irs forms I need to file. My friend insists that I have to file form 1065 and she wants a document with all incoming income and expenses for those two months she was a partner. My questions is; the Articles of Oganization were never changed to two owners and if the business lic was corrected, and she only made $400, does she have to report it to the irs and does she have to pay taxes for all the incoming income or just the $400?

  68. Stephanie

    I have sort of a different kind of question. I want to get rid of someone on my llc that has never done a thing nor ever comes around. Any ideas? I took her off of sunbiz, changed the name, ein num, everything needed to start a new business. Even had the lease put just in my name. Any ideas on if she can sue me or not, we live in FL

  69. Scott M.

    I created a LLC and got an EIN for it several years ago. I never operated a business or filed anything with the IRS under that EIN number or LLC name. I recently changed the LLC name with my state and started operating a franchise under the LLC. My question is do I have to get a new EIN or change the company name the EIN is listed under with the IRS?

  70. I formed an LLC through an online service. They are acting as the registered agent (at a monthly fee). The friend took a job that will not allow him to continue with our company. LLC was formed in Feb/2011 and now he needs out. We have done no business and made no money. He has not even signed anything. We have a FEIN # and I am the only name besides Co. name listed on it. The Operating Articles have not been signed. It is set up that I am 51% owner, manager, and responsible for the tax management. We are on good terms. What steps need to be taken in order to remove him and leave me as the sole member? Also I would like to change my registered agent, as I do not want to pay a monthly fee.

  71. Rich

    Aloha,
    I live in Hawaii and I started a multi member LLC with a friend of mine in march. We filed for the trade name, got our EIN and filed my partner as the registered agent. However, we have not yet filed for the general excise tax license (BB-1 packet). My partner is now backing out to take care of some family issues. So, I was wondering: 1. How can I change the name of the company, 2. How can I change to a sole proprietor non LLC and 3. Do I need a new EIN? If so, what form do I need for that??

  72. Janet

    Hi there, the info on removing a member from the LLC and keeping the same EIN still applies. The only thing that might be different is the address. Since I am in Arizona, I am mailing to: IRS, Attn: BMF Entity Unit, Ogden, UT 84201. I am mailing my letter today (thank you!)…a process made a whole lot easier with the info provided here. Why ISN’T this info on the IRS website? Sigh…

  73. Ryan

    Thank you so much for this site it is extrmely helpful..yes why indeed is this information not on the IRS website, it has to be a very common scenario in the LLC world. Formed a 2-person LLC, I was the one to register for the EIN on the IRS website and it requires you furnish a SSN# in order to get an EIN, so I provided mine. I just want to know that in case I have the leave the LLC I want a neat and clean mechanism to dissassociate my name/SSN from the EIN and I looks like you have to write a letter. Thanks!

  74. KMartin

    HI! Thanks for your helpful info! My company is a disreguarded entity LLC, with only one member-me. Constuction field. When I filed ss4 I recieved TWO EINs, one for me as a sole proprietor and one for the LLC. The letter from the IRS stated that it is mandatory for these two numbers to be issued together. Which of these two numbers do I use to issue 1099s to subcontractors, to pay them and which of these numbers do I use to fill out a W9 for a client, to get paid? According to the IRS website (dont quite understand the logic behind it…) it says use the sole prop. EIN for filling out a W9 to get paid from client. but doesnt say which EIN to use to issue a 1099 to a sub that worked on that job that the W9 was filled out for. Doesnt it seem like the two EINs used would be the same # (which would be the sole prop. EIN)? IF that is the case, why would I even need an EIN for the LLC? Maybe just for a bank account or something?
    Thank you for all your great info!!

  75. Vipul

    YOU ARE AWESOME…showed me the path..Thanks a lot!
    Just called IRS at the number you provided and they were very very helpful in providing me information i was looking at!

  76. lyili

    i mistakenly registered as a partnership with the irs but an llc with my state. how do i fix it?
    please help!

  77. Thank you so much Tomas! This is so helpful! I’m in the State of California and was advised by so many different CPAs & Attorneys so many different things. Just out of curiosity though, if you convert from and single member LLC to an S-Corp, is it considered an entirely new entity? Do previous debts of liabilities from the LLC transfer over to the newly converted S-Corp? Thanks!!

  78. Mike

    I gave my Father money to start his business . As a gesture he put My wife on and I on the LLC. We have never received any payment from the company. I have recentaly found that he has not paid sales tax for the last three months Our accountant feels like we are now liable for taxes and we should have our names removed for the LLC. What are your thoughts?

  79. Chris

    For all the folks asking questions here, it’s really easy and fast to get a response from the IRS phone number. Don’t be afraid to go to the source.

    In my case, I requested an EIN exclusively for a rental property and created as a partnership (by including my wife which I do on everything.) Well, in this case, that was a bad decision since it requires filing a separate Form 1065 Partnership Income which I do not want. Also, call your Secretary of State office to confirm if you need to file any amendments. In my case, Colorado does not record other owners so I didn’t have to make any changes/pay additional fees.

    They asked me to send a letter explaining that I was now the sole owner and to convert to a single-entity LLC vs. a partnership so I can file a schedule C and not Form 1065.

    I was told to send this letter to:

    IRS
    Ogden, UT 84201
    Attn: BMF Entity <—– told this is short for "business master file"

    I was told this will take 8-12 weeks to process and I can request a written confirmation to be sent (which I did).

    Thanks Tomas–at least you got me in the right direction. Hope this helps others.

  80. Michael

    Thanks very much for this excellent help. Good karma to you.

  81. Ed

    I have a cafe in NJ for 8 years and is a registered as LLC with my partner. He has decided that he is leaving and no longer wants to do this any more. I have decided to buy him out. I wanted to know what is the best solution for my business now. If I want to become a single member LLC, do I need to close my current LLC to get a new EIN?

  82. Steve

    I must have gotten a crabby seasonal worker when I called. He told me no way I could change my status from llc partnership to a sole proprietor. I had try to explain to him my wife and I just opened the business in August 2011 and this would be our first tax year. She decided she would rather not be involved with the business. I have everything tied to my original EIN umber and really can’t change it. I guess I will call back at another time and speak to someone different and see what response I get.

    Any other suggestions?

  83. catherine

    Do you have to have a lawyer do the Articles of Amendment with the changes to your LLC?

  84. Ben

    Thanks a ton! You just made my life a whole lot easier :)

  85. Cathy

    My husband formed a corporation in Delaware with a business partner. At this time, due to his regular job he is unable to help out with the corporation. He would like to have his name removed from the corporation. He will not be asking for a buy out, nor will he receive any monies from this. Can you tell me how to go about removing his name.
    Thanks.

  86. Bryan

    Steve- This article deals with converting from a multi-member LLC to a single-member LLC. You need to use this exact terminology when calling the IRS to ask your question. They are correct in what they said. If you want to convert from an LLC to a sole proprietor you need to dissolve the LLC then simply operate as a sole proprietor. The exact procedure for wrapping up your LLC is specific to your state.

    Catherine- You don’t need a lawyer for articles of amendment, but if it makes you feel more comfortable you could use a service such as Legalzoom to draft it.

    Cathy- Assuming you are referring to an LLC, have the remaining principal member draft an amendment to the operating agreement declaring your husband’s withdrawal which they both sign. Also, depending on the state the company may also need to file an amendment to the articles or incorporation or an annual report to record the withdrawal. If your husband is a co-signer on any company bank accounts he will need to be removed. Finally the company will need to issue a final K-1 (partner’s share of income/expenses) for the time he was there. Good luck!

  87. Tim

    I registerd my business as a LLC in Pennsylvania. I am the only member of the LLC. On the notice that I recieved from the PA Bureau of Corporation Taxes a Federal EIN# was listed beginning with PA in this format PA-#######. I didn’t apply for a federal EIN to my knowledge. Also everything I have read indicates that a number should lead instead of PA? Can you help me understand how this works. I was just going to file taxes under my personal Social Security #, but should I use the Federal EIN that was on the notice?

  88. Rk

    Hi Tom,
    I have formed a LLC with sole proprietor. This company bought another S corporation. Now I have to file the tax returns. Can I use the same FEIN of the company as the name does not changed but it was linked with previous owner SSN. Now my question is can I link FEIN with my SSN and use the same FEIN to file tax returns. please advice me on this issue.

  89. Emmitt

    Tomas and anyone who is reading this … on the following link, the last comment by Dana Atchley gives a lot of helpful info related to the original question here …

    http://www.avvo.com/legal-answers/is-it-better-to-be-classified-as-a-sole-proprietor-731651.html

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