Discussion:Changing Entity Types - Law Firm
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Discussion Forum Index --> Tax Questions --> Changing Entity Types - Law Firm
| 14 December 2006 | |
| I have a client (2 lawyers) that have operated as a general partnership for the last 2 years, and now would like to convert to an LLP (we are in California).
FYI - they only operated as a general partnership for the first two years because they did minimal business, and did not know if the venture would be successful. Now, in year 3, they have hit a good niche and look to become quite profitable. They will close out 2006 as a GP, and want to operate as an LLP starting January 2007. I have advised them that they need to take the following steps: 1.) Fulfill any licensing/relicensing requirements necessary by the applicable state professional board. 2.) File CA forms to set up an LLP. 3.) File a new SS-4 to obtain a new EIN# (showing that they changed their form of organization). 4.) Switch any all bank accounts and credit cards to the new LLP's EIN #. Am I missing anything?
Thanks for the help! | |
| 14 December 2006 | |
| I just love this question. Lawyers asking accountants what the law is. I don't know about California, but New York is sensitive about entity names. There would be a specific procedure in the LLP formation to adopt the DBA. | |
| 14 December 2006 | |
| Exactly, Dennis...I would think this would be more in their domain. I'm doing the research, but any help would be appreciated. | |
| 15 December 2006 | |
| I believe that you can check the CA SOS website for name availability. I see no reason to apply for a new EIN unless they plan on making a corporation election.
I don't believe that attorneys are allowed to use fictitious business names in CA. | |
