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Converting Multi member LLC to Single member LLC

 
 
biophase
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      02-28-2005, 08:54 PM
I created a Multi member LLC (2 members) last year (2004).

1) In late December I moved a rental property into it. In
retrospect I should have waited till January. However,
there was no rent collected nor expenses in 2004 after the
property was moved into the LLC.

Do I have to file a tax return for this LLC (1065) for 2004?
If I do, it would be pretty much blank except for costs of
incorporation right?

2) I want to convert the 2 member LLC into a single member
LLC. The only place that my partner is mentioned which has
been recorded is in the Articles of Organization.

The LLC operating agreement is not recorded anywhere. Can I
change my operating agreement to show only myself as a
member? Do I have to notify the commission?

If not, I can still use my current operating agreement and
according to it, a member can just give notice to me, the
Administrative member, to withdrawl from the LLC. If the
member has given me this notice and it's accepted, do I have
to notify anyone that this has happened?

The LLC is now a single member LLC, but I think the IRS is
still expecting a 1065 return for 2004?

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David Woods, EA, ChFC, CLU
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      03-03-2005, 07:11 AM
"biophase" <> wrote:

> I created a Multi member LLC (2 members) last year (2004).
>
> 1) In late December I moved a rental property into it. In
> retrospect I should have waited till January. However,
> there was no rent collected nor expenses in 2004 after the
> property was moved into the LLC.
>
> Do I have to file a tax return for this LLC (1065) for 2004?


Yes.

> If I do, it would be pretty much blank except for costs of
> incorporation right?


And the balance sheet, and the fact that you don't expense
organizational costs unless they occurred late in the year.

> 2) I want to convert the 2 member LLC into a single member
> LLC. The only place that my partner is mentioned which has
> been recorded is in the Articles of Organization.
>
> The LLC operating agreement is not recorded anywhere. Can I
> change my operating agreement to show only myself as a
> member? Do I have to notify the commission?


Legal matter not a tax matter. Consult with an attorney.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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