LLC to C-corp

Quote:

Originally Posted by andviv There was a similar thread here in the past... Check that one to see if that helps. can i change from sole proprietorship to llc ?

To answer your origional question: I'll just tell you a story.

I had an LLC, and I needed to change to an S-Corp. I called the IRS. A representative told me that I could keep the same EIN number, I just needed to fill out a form. (I don't remember the number).

I told my accountant. She said, "I have never heard of that" but she looked it up and confirmed that I could fill out that form. We did and went about business as usual.

One year later, I got a call from the IRS. "You can't keep the same number when you switch from an LLC to an INC. We issued you a new number. Here it is." I said, "Yes you can. I was told about form xxx from an IRS rep and I filled it out."

They said. "no you can't."

It was pointless to fight it, as they had already issued a new number.

It caused a huge headache. I had employer payments getting filed under one number and forms getting filed under the other number. I had letters from the IRS stating that I had not payed my employer tax under one number, and letters stating that I had money sitting there, but no return on the other number.

Thus the answer to this question is yes I can switch an LLC to C-corp but it'll cost me a lot in the long run. So NOT WORTH IT.