Technical topics regarding tax preparation.
9-Aug-2022 3:14pm
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EIN - IRS, California Entities
Hello,
I have a client who is running into 2 scenarios.
They converted their C corps to LLCs
1) Staraightforward conversion. Company INC to Company LLC - The underlying partnertships, nature of business and members did not change.
2) name change - Company INC to Company ABC LLC - The underlying partnertships, nature of business and members did not change.
Both have old EINs and when they converted, they are wondering if they can use OLD EINs or need to get new ones. I tried to call IRS with no response.
Reaching out here to see if you guys went through this scenario.
Thanks.
10-Aug-2022 5:55am
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If it's the same legal entity (the existing corporation filed paperwork with the state Secretary of State converting the legal structure of the existing entity to be governed by LLC state law rather than corporate state law, and the existing entity continues on -- with or without a simultaneous name change), then they keep the existing EIN.
If they dissolved the corporation and transferred its assets to a brand new entity (LLC), then the new LLC needs a new EIN.
10-Aug-2022 7:20am
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Those type of conversions are typically considered F reorganizations and do not require a new EIN.
10-Aug-2022 9:09am
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Nowhere in the OP did it state that the LLC is still taxed as a c-corp. If this is the case, then I agree with the other posts.
If these LLCs are now intended to be taxed as partnerships, you have a tax liquidation, which should carry with it a new EIN and, likely, a tax liability.
~Captcook
10-Aug-2022 10:42am
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Scenario 2) cannot be done unless there was also a legal change.
10-Aug-2022 8:50pm
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Thank you all. I am continueing in the both cases with the same EIN.
11-Aug-2022 10:34am
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And you say nothing about remaining a C corp...which is the most important issue.
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