Converting Multi member LLC to Single member LLC


B

biophase

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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D

David Woods, EA, ChFC, CLU

biophase said:
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.
 

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