Bobby Luthra
New Member
- Jurisdiction
- Michigan
Hi I am in India. My wife is a US citizen. I am intending to create a Michigan LLC with my wife as the responsible party. And I will be a member. This is so I can get an EIN quick because my wife has a SS#.
However my wife wants to give up her membership in the LLC as soon as it is created. She does not want tax liability from this llc. We will file forms 8822 with the IRS to inform them of change of responsible party. And form 8832 to convert it to a single member llc. This paperwork must be filed within 60 days of the change.
Question 1. Can we set up my wife as having 0 percentage in the llc or 0 economic interest and still make her responsible party?
Question 2. When does the change in responsible party go into affect - when the forms are filed or when the irs approves the change? That means can she be liable to pay taxes on earnings of the llc even after we file the forms with the irs?
Question 3. If 0 percentage is not allowed or not advisable for my wife, can she have 1% and I have 99% economic interest? Until she can give up her membership.
However my wife wants to give up her membership in the LLC as soon as it is created. She does not want tax liability from this llc. We will file forms 8822 with the IRS to inform them of change of responsible party. And form 8832 to convert it to a single member llc. This paperwork must be filed within 60 days of the change.
Question 1. Can we set up my wife as having 0 percentage in the llc or 0 economic interest and still make her responsible party?
Question 2. When does the change in responsible party go into affect - when the forms are filed or when the irs approves the change? That means can she be liable to pay taxes on earnings of the llc even after we file the forms with the irs?
Question 3. If 0 percentage is not allowed or not advisable for my wife, can she have 1% and I have 99% economic interest? Until she can give up her membership.
Last edited: