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new id for llc on death of 80% member

January 24, 2017 • James Griffith • Log In to Post Comments

Is llc required to file final return and start over with new id# on death of majority owner?


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James,

When majority ownership of a partnership (or LLC taxed as a partnership) changes hands, then you have what is called a "technical termination."  You do not need a new EIN, but you do file two short-year returns covering the the periods of different ownership.  The short year covering 1/1/xx to the date of the member's death should be marked as a final return and the technical termination box at the top of page one of Form 1065 should be checked.  The short year covering the period from the member's date of death to 12/31/xx should be marked as an initial return. 

The technical termination rules are too, well, technical to answer in a short message board post, but please look up the reporting requirements for technical terminations and that should help you determine how to report the two short year returns.

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