My friend bought 30% of my LLC in July. Do we file a partnership return for the whole year or only from the conversion date?
I am a founder from Pakistan and had a single-member Wyoming LLC until July 14, when a friend bought 30% from me. We did not form a new legal entity. The same LLC just kept operating, and total revenue for the year will probably land around $240,000. Our accountant is now asking for a much more detailed opening-balance-sheet story than I expected.
What is tripping me up is whether the whole year now becomes a partnership year or whether the tax file has to recognize the exact date the second member came in. I also do not know whether the transaction is treated like he bought part of the assets, part of my membership, or both for federal tax purposes.
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