MMLLC TO SMLLC

[Jim-from-Ohio]

• 1065 LLC, two members.
• one wants out end of 2019
• i was going to file 8832 effective for 2020 going to disregarded entity, (schedule c)
• Does this sound correct?
• If so do I mark 2019 Form 1065 final return.

[sjrcpa · Accepted solution]

If a two member LLC loses one member it is automatically a disregarded entity. No need to file/elect anything. 

I mark the 1065 final and attach a statement explaining that Jon Smith XXX-XX-XXXX remaining member will continue the business and it will be reported on his 1040 Sch C, E or F