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Sole proprietor to LLC: what changes

Mostly paperwork, not tax — until you elect.

• Expect no tax change by default; the LLC is a legal change, not a tax one.

• Get a new EIN if you add owners or elect corporate treatment.

• Note the conversion date; it splits the year into two filing periods.

• Keep pre-formation expenses with the period they belong to.

• Take on the state filings a sole proprietorship never had.

• Decide separately whether an S-corp election is worth it.

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