Changing from Single Member to Multi-Member LLC

[Jason Mayberry]

Good Morning,

I set up my LLC a few months ago as a single member LLC, I want to change it over to Multi-Member for better protection. Does anyone know how to do this, and what should I look out for? Also, is there a certain number of percentage that I would have to give away, my LLC is setup in the state of Florida. Thanks for the help

[Robert Feldman]

I'm not sure on the particulars for the state of Florida. For federal purposes, you will need to obtain a new EIN. This only takes a few minutes, but changing everything related to that EIN can be a hassle. Also, unless the other member is your wife, who works 500 hours or more in the business, you will not be able to file a Schedule C on your 1040 for the business. You will be required to file a separate Form 1065 (or 1120 or 1120S) for the LLC before filing your 1040. Your share of the income will be reflect on a K-1 from the business for you to prepare your 1040.