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Posted by dan.cardinal on January 11, 2008, 3:09 pm
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Hello,
I created a Wisconsin LLC in 2006. I then obtained an EIN from the
IRS. When I obtained the EIN I was thinking of the LLC as a
partnership and therefore checked Partnership for "Type of Entity".
The LLC has been dormant since inception but to keep the IRS happy I
filed a Form 1065 for it with no income/expense for the 2006 tax year.
I've now come to realize that the extra hassle of having the IRS tax
the LLC as a Partnership is not worth it and I would rather them tax
it as disregarded/sole-proprietorship. Upon reviewing the Wisconsin
Articles of Organization for the LLC there is no listing of Members
(there is a listing of Organizers but I don't think those are members)
so it would seem to me that the easiest way to change the IRS's
classification of the LLC is to fill out a Final Form 1065 using the
EIN I already have for the 2007 tax year and then obtain a new EIN
with a disregarded entity type for future use (thereby eliminating the
IRS requirement of a Form 1065). Does that sound like a reasonable
approach?
I guess the main thing I'm looking to confirm is whether the state of
Wisconsin needs to be notified of this change--I strongly suspect not
because I don't think they even know/care who the "members" of the LLC
are. I actually called the IRS about this last tax season and they
said I should fax the revised articles of organization to them.
However, since I see no need to revise the articles of organization
(again, since no members are listed) I suspect that was incorrect
advice and that it will be easier and just as legitimate to just scrap
the old EIN and get a new one.
Thanks in advance for any help.
--
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