Question

Once Sole Proprietor, now LLC. Assests question

Forum|Forum|4 years ago
December 16, 2021
1 reply
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Hi, All!

I'm very new to all this and appreciate ANY advice.

My situation: For most of 2021 I have been running a business as a Sole Prop. Mostly in a consulting role, however I did need to purchase equipment for the Sole Prop. in order to do some of the roles needed. Some of them were in the Video Game space where I had to purchase some video game consoles as well as software to perform the tasks needed.

Now I have created an LLC for this company. Can I transfer those assets to the new LLC and how would that work? I assume in the Sole Prop. that some of that equipment would be write-off eligible, if I transfer the assets will that no longer be the case?

Thanks again for all of the advice!

Critter-3

If the LLC is a single member LLC that has NOT incorporated then nothing for you has changed. You will continue to file the same Sch C like always if the business did not really change fundamentally and you will add the LLC EIN (if you got one) to the business info for the Sch C.

B

Bobby5301Author

Yes, it's a single owner.

So I do not need to transfer assets?

Critter-3

You are NOT transferring anything ... you will continue with the same Sch C as you always have in the past ... the only thing extra to do is add the EIN (if you got one) to the Business info section of the Sch C.