[WSBARP] single member to two-member LLC

[Richard Holland]

I haven't seen any response to this, and I am definitely not a tax expert but reasoning through it:  Isn't the reason the H&W are 'one' person for the LLC because the marital community is a single thing?  If that's the case, then you no longer have one 'thing'.  You have two.  You have Estate of H (which presumably now only consists of his separate property) and W (who, presumably now has all of the CP and her separate property).  That, to me, would say it is a two 'thing' LLC and therefore must file - especially since the Estate of H pulled its own EIN.

That's a 'typing this while drinking coffee and procrastinating on starting a project' response, so probably worth what you're paying for it.


Thanks,

Rich Holland
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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Rod Harmon
Sent: Thursday, November 16, 2017 10:29 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] single member to two-member LLC

An LLC in which H&W are the sole members is considered by the IRS to be a single-member LLC and therefore a disregarded entity.  It does not need its own EIN and it does not file its own tax return, but its activity is reported on Schedule C of H&W's joint return.  But then H dies, his wife is the PR of his estate, and his estate obtains an EIN.  Is the LLC now a two-member LLC that must apply for its own EIN and file its own tax return?

Rod Harmon

RODNEY T. HARMON
       Attorney at Law
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      Bothell, WA   98041
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