Comments on: Updating your EIN to reflect a Single Member LLC

By: Tim

Tim — Tue, 03 Apr 2012 14:24:38 +0000

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?

By: Bryan

Bryan — Mon, 20 Feb 2012 06:32:35 +0000

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!

By: Cathy

Cathy — Fri, 17 Feb 2012 23:22:15 +0000

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.

By: Ben

Ben — Thu, 16 Feb 2012 00:56:26 +0000

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

By: catherine

catherine — Wed, 01 Feb 2012 19:14:17 +0000

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

By: Steve

Steve — Tue, 24 Jan 2012 23:41:35 +0000

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?

By: Ed

Ed — Thu, 12 Jan 2012 03:32:58 +0000

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?

By: Michael

Michael — Fri, 06 Jan 2012 00:19:20 +0000

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

By: Chris

Chris — Fri, 30 Dec 2011 18:41:49 +0000

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.

By: Tom

Tom — Tue, 20 Dec 2011 18:26:08 +0000

http://www.irs.gov/businesses/small/article/0,,id=98011,00.html