Question

EIN Change for Conversion from LLC (S Corp) to C Corp (S Corp)

Forum|Forum|2 years ago
August 17, 2023
2 replies
0 views

Looking to convert single member Calif LLC (treated as S corp) to C / general stock corp (treated as S corp) using SOS conversion form.

***My question is whether it’s possible to avoid a new EIN for the entity?

Publication 1365 seems to say when incorporating an entity, need a new EIN. Seems to apply here since going from single member LLC (disregarded from owner) to C corp.

But when I called IRS, agent said that since currently entity is an S corp, no need for EIN change; and can simply do a name change from LLC to Inc.

IRS agent said that because business name is line 1 of entity in IRS systems (and individual owner name is Line 2), they treat the entity as a corp (as opposed to business name being in second line and individual name in first line).

I have a feeling agent is wrong but want to get thoughts/suggestions/comments here.

Thanks in advance.

A

Anonymous_

Employee

"Seems to apply here since going from single member LLC (disregarded from owner) to C corp."

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

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

You report income tax as a branch or division of a corporation or other entity, and the LLC has no employees or excise tax liability.
An existing partnership converts to an LLC classified as a partnership.
The LLC name or location changes.
An LLC that already has an EIN chooses to be taxed as a corporation or as an S corporation.

T

TaxCat1Author

@Anonymous_ so what's your opinion? that it is required or not required to change EIN?

any of the Tax Experts from Intuit want to chime in? @Bozaya @MelanieC1 @JanetB21

A

Anonymous_

Employee

@TaxCat1

Do you already have an EIN for your LLC? If so, you do not need a new EIN if you make an election fot your LLC to be treated as a corporation for federal income tax purposes.

R

Raswider1

This is incorrect. I just helped a client (I am a lawyer CPA) write a letter to the IRS requesting for the IRS to assign the LLC’s EIN (taxed as partnership) to the post-conversion corporation (taxed as corporation). The IRS confirmed they would reassign the EIN to the post-conversion corporation.