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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Under the LLC Act, I think it is possible to conclude that the wife, as PR and on behalf of the estate, becomes an assignee of H’s interest, unless his estate planning documents or the probate code provide otherwise. H has ceased to be a member of the LLC (technical term is “dissociation”). If W wants to continue the LLC and elects within 90 days after the date of death to do, she has the right to continue the LLC and become the sole remaining member. In that case, the LLC would have continued as a single member entity for tax reporting purposes, and no new EIN should be required. If she does not elect within the 90 days, the LLC would be dissolved under RCW 25.15.265.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>In a quick search, I did not find any IRS guidance on this, so I would check with a knowledgeable CPA regarding the required tax reporting.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Bob Pampell<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Robert Pampell, Attorney<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>21st Century Law Office (r)<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#365F91'>19125 Northcreek Parkway, Suite 120<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#365F91'>Bothell, WA 98011<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>voice: 425-329-2629<br>fax: 877-640-6403<br>cell: 425-501-4784<br>email: </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="mailto:rpampell@swcp.com" title="mailto:rpampell@swcp.com"><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>rpampell@swcp.com</span></a></span><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="http://www.linkedin.com/in/robertpampell"><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>http://www.linkedin.com/in/robertpampell</span></a></span><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Richard Holland<br><b>Sent:</b> Monday, November 20, 2017 11:54 AM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBARP] single member to two-member LLC<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>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. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>That’s a ‘typing this while drinking coffee and procrastinating on starting a project’ response, so probably worth what you’re paying for it.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Thanks,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Rich Holland<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><a href="mailto:rich@pnwle.com"><span style='color:#0563C1'>rich@pnwle.com</span></a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'>603 4th Avenue, Suite 100 <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'>Kirkland, WA 98033 <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'>877.785.8734 / 866.982.5080 (fax)<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'>BE AWARE! Online banking fraud is on the rise. </span><span style='font-size:9.0pt;font-family:"Calibri",sans-serif;color:red'>If you receive an email containing instructions on where or how much to send to our office, CALL TO VERIFY prior to sending. <b>** WE DO NOT CHANGE OUR BANKING INSTRUCTIONS**</b></span><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Calibri",sans-serif'>The information contained in this communication, and in any attached document(s), is privileged and/or confidential, intended solely for the individual/entity to whom/which it was sent. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this information is strictly prohibited. If you have received this email in error, please notify me immediately at the email address, mailing address, or telephone or fax number above.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Rod Harmon<br><b>Sent:</b> Thursday, November 16, 2017 10:29 AM<br><b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br><b>Subject:</b> [WSBARP] single member to two-member LLC<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>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?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Rod Harmon</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D'> </span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D'>RODNEY T. HARMON</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'> Attorney at Law</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> P.O. Box 1066</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> Bothell, WA 98041</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> Tel: (425) 402-7800</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> Fax: (425) 458-9096</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> <a href="http://www.rodharmon.com"><span style='color:#0563C1'>www.rodharmon.com</span></a></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> <a href="mailto:rodharmon@msn.com"><span style='color:#0563C1'>rodharmon@msn.com</span></a></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal style='margin-top:6.0pt'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><div><div><p class=MsoNormal><o:p> </o:p></p></div></div></div></body></html>