Wisconsin LLC, EIN and tax forms

Hello,

I created a Wisconsin LLC in 2006. I then obtained an EIN from the IRS. When I obtained the EIN I was thinking of the LLC as a partnership and therefore checked Partnership for "Type of Entity". The LLC has been dormant since inception but to keep the IRS happy I filed a Form 1065 for it with no income/expense for the 2006 tax year.

I've now come to realize that the extra hassle of having the IRS tax the LLC as a Partnership is not worth it and I would rather them tax it as disregarded/sole-proprietorship. Upon reviewing the Wisconsin Articles of Organization for the LLC there is no listing of Members (there is a listing of Organizers but I don't think those are members) so it would seem to me that the easiest way to change the IRS's classification of the LLC is to fill out a Final Form 1065 using the EIN I already have for the 2007 tax year and then obtain a new EIN with a disregarded entity type for future use (thereby eliminating the IRS requirement of a Form 1065). Does that sound like a reasonable approach?

I guess the main thing I'm looking to confirm is whether the state of Wisconsin needs to be notified of this change--I strongly suspect not because I don't think they even know/care who the "members" of the LLC are. I actually called the IRS about this last tax season and they said I should fax the revised articles of organization to them. However, since I see no need to revise the articles of organization (again, since no members are listed) I suspect that was incorrect advice and that it will be easier and just as legitimate to just scrap the old EIN and get a new one.

Thanks in advance for any help.

Reply to
dan.cardinal
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wrote

What the IRS told you to do is what you should do. It's how they fix it internally.

You should see if they can change it by letting them know you made a mistake on the SS-4 application. See what they say needs to be done to fix that error.

Reply to
Paul Thomas, CPA

Thanks for the quick reply Paul. I just called them as you suggested and when I explained that the mistake was the "Type of entity" they said that cannot be changed for EINs and that I would have close out the old one and apply for a new one.

Please do post if you think that's a bad idea and I'll call again to make sure I get consistent direction (as I mentioned, when I called a year ago they did mention faxing in proof of the change so they could update it)...

Reply to
dan.cardinal

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