Today TaxMama hears from Kathy in Minnesota who wants to know.
https://www.richereducation.co.uk/wp-content/languages/new/essay-writing-service-reviews.html
“What is the form to elect to change business form? For instance to change from a partnership to a sole proprietor?”
Hi Kathy,
As far as I know, if you’re a partnership and want to file as a sole proprietor, you must dissolve the partnership, distribute the assets and debts and file a final tax return. Incidentally, when you’re down to one partner, the partnership will automatically end and become a sole proprietorship, whether you want it to or not.
https://www.richereducation.co.uk/wp-content/languages/new/essay-writing-help.html
But you still have to record the adjusting entries to reflect the distributions of assets and relief of debt, if any, to the exiting partners.
Now, if you are talking about an LLC, and the LLC wants to make an election to change how it reports its activities, that’s different. (I think that’s what you really mean, right?)
You would use Form 8832 to designate the entity classification. You’ll find some useful information here, including a link to the form https://www.
https://www.richereducation.co.uk/wp-content/languages/new/cheap-custom-research-papers.html
irs.gov/faqs/faq-kw105.html
And remember, you’ll find answers to lots of questions, about whether or not you should incorporate and other tax information, free. Where? At TaxMama.com
[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips. Please click on the subscribe link and join us.]- Ask TaxMama :: Where taxes are fun and answers are free
- TaxQuips :: The number ONE tax podcast online
- Small Business Taxes Made Easy :: Chapter 3 explains the different business forms, like corporations, LLCs, etc.
- IRS FAQs :: Limited Liability Company (LLC)
File Download (0:00 min / 0 MB)
