Hi everyone, hoping someone here has gone through this and can share what you did.
If you did a statutory conversion of an LLC into a C-Corporation, did you:
1. Apply for a brand-new EIN for the C-Corp,
OR
2. File a form to reclassify the LLC for tax purposes as a corporation (e.g., Form 8832 or 2553), and keep the same EIN?
I’m getting mixed info online. Some people say a statutory conversion requires a completely new EIN, others say you can keep the old one if the business entity “continues” and just changes classification.
If you’ve actually done this before, what route did you take and why?
Thanks in advance!
Question about EIN after Statutory Conversion (LLC → C-Corp)
byu/NobodyDue4431 intax
Posted by NobodyDue4431
2 Comments
How was the LLC taxed previously? The tax filings will depend on that.
If you did a legal conversion you would not want to file an 8832 since that is for the tax classification of an LLC and you wouldn’t have an LLC any longer.
For the EIN if the legal entity is converted the new corp should be successor to everything of the LLC then I don’t see any reason not to use the same EIN.
If the LLC was taxed as a C corp previously then it would just be a F reorg aka simple change of name or place of incorporation with essentially noting changing besides the suffix of the name and a one page statement. Otherwise you have initial and final returns and hopefully you did a hard close of your books on the date of the conversion.
I’m pretty sure the IRS would consider it a new corporation so an 8832 would not be appropriate and a new EIN would be required similar to incorporating a sole proprietorship. §351 would apply, so make sure basis in the LLC assets exceed the debt at date of transfer.