Converting Multi member LLC to Single member LLC

Discussion in 'Tax' started by biophase, Feb 28, 2005.

  1. biophase

    biophase Guest

    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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    biophase, Feb 28, 2005
    #1
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  2. "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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    David Woods, EA, ChFC, CLU, Mar 3, 2005
    #2
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