Had new client a year ago who started a company before they were a client of mine. Prior accountant handled it on Sch C and I was provided EIN letter from client saying its a SMLLC.
Found out recently there is an operating agreement that lists an additional owner and that it should be a partnership. Partner requesting 2022 k1 even though they never received one in the past.
2020 and 2021 were filed as Sch C, 2022 personal return extended.
I guess you would have to get a new EIN for the entity and go back and file partnership returns for those years now?
What is best way to handle payroll since there will be a new EIN?
How much penalties can they get forgiven?
I've read about this happening more than it should, but just want to get a decent direction on how to proceed.. also what precautions do you take to prevent something like this from happening? Most people I deal with SMLLC, don't even have operating agreements or know what it is when I ask for it.