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Thread: Single-Member LLC--- New Jersey

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    Unhappy Single-Member LLC--- New Jersey

    I started my company in May 2010. I don't want my competitor to find out it is under my name so I filed under my husband's name and it is filed under the entity of Partnership.

    Now I need to remove his name and add my name, also I need to change the entity. I called IRS and talked 6 different people, some told me I need new EIN, some told me I can mail a letter and tell them all the change.


    Can someone tell what is the best way to change it ? I guess mail it and keep the same EIN ?

    Thank you very much

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    Here's the IRS link, and a selected quote that I think answers your question:

    Do You Need a New EIN?

    "Partnerships
    You will be required to obtain a new EIN if any of the following statements are true.
    You incorporate.
    Your partnership is taken over by one of the partners and is operated as a sole proprietorship.
    You end an old partnership and begin a new one. "
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    Changing the entity or the makeup of a partnership requires a new EIN, I believe.

    Also note that your LLC means nothing in the eyes of the federal government - LLCs are a state-level legal entity. A single-member LLC may be taxed federally as either a sole proprietorship or a corporation, depending on how you set it up. Each has its benefits, but taxation as a sole proprietorship (a "pass-thru" entity) is generally the easiest, least expensive, and most suitable.
    Last edited by Capitalist; 03-10-2011 at 04:45 PM. Reason: Spelling
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    In most states businesses are registered at the state level (often with the Secretary of State's office) or at the county level. Before you make changes with the IRS, you need to change your registration with your state or county. Most states have a business web site where you should be able to find the necessary forms. If not, call the office that registers businesses in your state. You may also need to contact an attorney to dissolve the partnership (which you will have to do with the state or county before registering as an LLC) and have an Operating Agreement created for the LLC.

    If you have employees and pay withholding tax, you may also need to contact your state department of labor, particularly if you get a new EIN. If you have a sales tax permit, you may need to notify your state department of revenue if you get a new EIN.

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    Part of the reason that you may be getting different answers is that even the little information you posted here is inconsistent. The title of your post is "Single-Member LLC--- New Jersey" and you say "I filed under my husband's name" but you also say "it is filed under the entity of Partnership."

    A single member LLC is a typically disregarded entity. If you elect, you can treat the LLC as a corporation or even elect to have the LLC treated as an S corp. You cannot, however, treat a single member LLC as a partnership. As a disregarded entity owned by one individual, the income and expenses would be reported on the Schedule C of your husband's 1040 (which in most cases would be a joint return with you).

    Exactly how did you fill out the SS-4 for the IRS? Also, although it is not particularly relevant to the IRS, which box did you check on the NJ-REG form: LLC (1065 Filer), LLC (1120 Filer), or LLC (Single Member)?

    Are you being consistent in your treatment?

    Do you consider your husband an owner at all now? If you are the sole owner of the entity, it is not a partnership. You cannot have a "partnership" with yourself as the only "partner." A partnership is defined as 2 or more.

    If you and your husband are co-owners, it is a partnership. Although an LLC owned by a husband and wife can be treated as disregarded entity in a community property state, in non-community property states such as New Jersey, an LLC owned by a husband and wife must be treated as a partnership.

    Without knowing all the facts, it is difficult to say whether changing the name to you from your husband requires obtaining a new EIN.

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