QUESTION: If my LLC elects to be treated as a C-Corp, will it require a new Employer Identification Number (EIN)? I am considering transferring all my LLC shares to a family member, like my wife or another relative, to optimize future taxes. I’ve heard this might also require changes to the EIN. Can you clarify this or direct me to someone who can assist? The LLC is registered in Wyoming.
EXPERTS ANSWER:
Electing your LLC to be treated as a C-Corp does not require obtaining a new Employer Identification Number (EIN). For instance, if your LLC, originally taxed as a pass-through entity, elects to be taxed as a C-Corp, your EIN remains the same.
However, if you are considering transferring all your LLC shares to a family member, like your wife or another relative, to potentially optimize future taxes, note that while the EIN will remain the same, you must update the IRS with the information about the new responsible officer by filing form 8822-B. This change ensures that the IRS has the correct contact person for any matters related to the LLC.
Example Scenario: Suppose John Smith transfers 100% ownership of his Wyoming-registered LLC, initially treated as a disregarded entity, to his wife. After the transfer, although the tax classification and EIN of the LLC remain unchanged, John must notify the IRS by filing form 8822-B to change the responsible officer’s details to reflect his wife’s information.
Next Steps: For detailed guidance on how this transition impacts your specific tax situation and to ensure compliance with IRS requirements, you may wish to consult with a specialized tax professional. O&G Tax and Accounting Services offers expert advice tailored to your unique circumstances.
For a personalized consultation, visit our appointment booking form: O&G Tax and Accounting Services Consultation.
