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Conversion from S-Corp to LLC Federal EIN Change

MMIC41069
Level 1

I have a client that did a Conversion from S-Corp to LLC.  My question is: Does the LLC need to apply for it's own Federal EIN or keep the same Federal EIN #?

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abctax55
Level 15

Was this entity originally an LLC that "elected to be treated as an S-Corp"

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MMIC41069
Level 1

No. It's the opposite S-Corp to LLC.

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abctax55
Level 15

Then you have a dissolution, with the resultant tax consequences.

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PhoebeRoberts
Level 9
Level 9

Short version: if the LLC will continue to be taxed as a corporation (C or S), no new EIN. If it will be taxed as a partnership or disregarded entity, you need a new EIN (and have a taxable event). 

 

https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

Corporations

You will be required to obtain a new EIN if any of the following statements are true.

  • A corporation receives a new charter from the secretary of state.
  • You are a subsidiary of a corporation using the parent's EIN or you become a subsidiary of a corporation.
  • You change to a partnership or a sole proprietorship.
  • A new corporation is created after a statutory merger.

You will not be required to obtain a new EIN if any of the following statements are true.

  • You are a division of a corporation.
  • The surviving corporation uses the existing EIN after a corporate merger.
  • A corporation declares bankruptcy.
  • The corporate name or location changes.
  • A corporation chooses to be taxed as an S corporation.
  • Reorganization of a corporation changes only the identity or place.
  • Conversion at the state level with business structure remaining unchanged.