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Updated over 6 years ago on . Most recent reply
Looking for some advice on my brand new LLC
Hello all!
I was preparing for my first fix and flip investment. In the process, i decided that i should create an LLC. I went ahead and set it up as a multi-member because i have my cousin as a partner on this first one.Then, after some sole searching, decided that maybe it would have been better to set it up as Sole-Proprietor. That way, each of us could have our own entities and still work together. Then later, when we are ready, we can easily split up and continue on our own. Unfortunately, it doesn't seem like there is a simple way to change the LLC from multi-member to single-member. I feel like I'm stuck with the multi-member. Will that be an issue during tax time? I believe that i can file a form 8832 to classify it as sole-proprietor. So, the question is... Will I be ok if i leave it as a multi-member LLC or should i try to correct it to a single-member somehow? Any thoughts? Much appreciated!
I was preparing for my first fix and flip investment. In the process, i decided that i should create an LLC. I went ahead and set it up as a multi-member because i have my cousin as a partner on this first one.Then, after some sole searching, decided that maybe it would have been better to set it up as Sole-Proprietor. That way, each of us could have our own entities and still work together. Then later, when we are ready, we can easily split up and continue on our own. Unfortunately, it doesn't seem like there is a simple way to change the LLC from multi-member to single-member. I feel like I'm stuck with the multi-member. Will that be an issue during tax time? I believe that i can file a form 8832 to classify it as sole-proprietor. So, the question is... Will I be ok if i leave it as a multi-member LLC or should i try to correct it to a single-member somehow? Any thoughts? Much appreciated!