I'm looking for advice on a change in status with my LLC.
When originally formed in 2009, my LLC had 2 partners. At the end of 2017, my partner left the LLC and I am now the sole member. We completed necessary document work to amend the articles of organization to reflect this change in status and they now show I am 100% operational and 100% financial owner. We have a registered EIN on file.
We previously filed state and federal taxes as the LLC and generated a K1 for each of ourselves.
I would like to maintain the LLC status. If it makes a difference, we do pay sales tax to the state for our business.
My question comes in for taxes for next year - will I still file state and federal taxes and generate myself a K1, or will I no longer file state and federal taxes as the business and instead report as self employment on my personal taxes? This is in Pennsylvania if that would make a difference.
Thank you in advance for any advice.
Your state should continue to recognize the LLC.
However, for federal income tax purposes, the partnership has dissolved/liquidated and the final partnership return should reflect that. You need to review the rules and necessary computations for the dissolution of a partnership.
As a single member LLC, for federal income tax purposes, unless you elect to file as corporation, then you file a Sch C, as a disregarded entity. A single member LLC cannot file a Form 1065 - the definition of a partnership means more than one partner.
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