Converting Multi Member LLC to Single Member LLC - Pay $ 800? - Spidell

Converting Multi Member LLC to Single Member LLC – Pay $ 800?

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Message Board Converting Multi Member LLC to Single Member LLC – Pay $ 800?

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    • #187233
      Anonymous
      Member

      A two member LLC paid the 2019 CA min tax ($ 800). Subsequently, one member died in 2019. The multi member LLC now becomes a single member LLC. Does the single member LLC have to also pay $ 800 for tax year 2019? Or is the $ 800 paid by the multi member LLC also good for the single member LLC for 2019?

    • #187285
      Lynn Freer
      Participant

      It depends on who the beneficiary to the deceased owner. If it is the other member, you must file another return and pay the $800 twice. If it was someone else, the estate or beneficiary becomes the other member and it’s still a multi member LLC. In that case, you can arrange to acquire the other owner’s interest on 12/31/19 and just make the change then

    • #187394
      Anonymous

      The surviving spouse inherits from his deceased spouse. The decedent’s estate will not be settled until well into next year. Does this mean the decedent spouse’s estate becomes the successor member so that there isn’t a single member LLC?

    • #187421
      Lynn Freer
      Participant

      I would say that if the LLC interest is part of the probate estate, the owner is the estate. If it was in a living trust, the interest goes to the surviving spouse. That’s my opinion. If you want you could use the FTB’s Ask the Experts on their website for an opinion.

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