How to Notify the IRS of a Change of Ownership of a Single-Member LLC

by
How do you notify the IRS of a change of ownership of a single-member LLC?
If the member leaving the LLC is listed as the Responsible Party, the IRS must be informed by the LLC’s filing of the Form 8822-B and a new Responsible Party must be named. The IRS mandates the Form 8822-B is filed within 60 days of the membership change.
Read more on www.delawareinc.com

You must inform the IRS if you are the sole owner of a single-member LLC and there has been a change in ownership. Although alerting the IRS is a simple procedure, it is crucial to follow the steps exactly to prevent any future IRS complications.

If you have changed ownership of your single-member LLC, you must first get a new EIN (Employer Identification Number). You will need to file for a new EIN if your LLC’s EIN was previously your social security number. You do not, however, require a new EIN if you currently have one for your single-member LLC.

You must inform the IRS of the change of ownership after obtaining a new EIN (if required). You must complete and submit IRS Form 8822-B, the Change of Address or Responsible Party – Business form, in order to accomplish this. Use this form to inform the IRS of any alterations to your company, including a change of ownership.

You can fill out the IRS Form 8822-B online or print it out and mail it to the IRS. It is available on the IRS website. You must fill out the form with your old EIN, your business name, your new EIN (if applicable), the old EIN, and the date the ownership changed.

It is crucial to remember that you have 60 days from a change in your firm to inform the IRS. If you don’t, the IRS may impose penalties or fines.

In conclusion, informing the IRS of a change in ownership of a single-member LLC is a straightforward procedure, but it is essential to make sure you follow it exactly to prevent any future IRS complications. To inform the IRS of the change of ownership, you must complete IRS Form 8822-B and obtain a new EIN (if required). It’s crucial to keep in mind that you must notify the IRS of the change within 60 days.

If I Change to an LLC, Do I Need a New EIN?

You will require a new EIN if you are the only owner of a single-member LLC and decide to change it to a multi-member LLC. This is so that a new EIN can be obtained since the IRS views a multi-member LLC as a separate entity from a single-member LLC.

Additionally, you will require a new EIN if you are altering your LLC’s structure from a single-member LLC to a corporation or a partnership. This is due to the fact that each form of business entity has a distinct EIN, and the IRS mandates that you obtain a new EIN whenever your company entity type changes.

In conclusion, you must acquire a new EIN if you are changing the structure of your LLC or converting it from a single-member LLC to a multi-member LLC. To prevent any future complications with the IRS, it is crucial to make sure you obtain a new EIN.

Leave a Comment