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#2269728 - 04/27/22 07:39 PM ENTITY TYPE CHANGE & BENEFICIAL OWNERSHIP
aherbert Offline
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Joined: Sep 2016
Posts: 20
We have a commercial customer who has a few accounts with us as an incorporated entity. This customer provided a certificate of conversion and changed the entity type from Incorporation to an LLC. The customer is the sole member. The EIN from the incorporation has not changed. Our customer service rep made the change to the account and attempted to proceed with changing the entity type on the customer's other accounts but was specifically told not to by the customer. They only wanted one of their accounts updated to reflect the LLC, while the others remain as Inc.

The alarms are sounding for me but there is a disagreement as to whether we need to get updated beneficial ownership forms reflecting the entity type change. I don't understand how we can justify changing the type on one account but not the others. I'm trying to get my ducks in a row before "bothering" the customer. I understand this is a difficult customer not to be contacted unless absolutely necessary. What am I overlooking here?
Last edited by aherbert; 04/27/22 08:39 PM.
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#2269739 - 04/27/22 08:32 PM Re: ENTITY TYPE CHANGE & BENEFICIAL OWNERSHIP aherbert
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,926
Galveston, TX
If the corporation was converted to an LLC, then the corporation no longer exists. How can it still have accounts?
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#2269744 - 04/27/22 10:03 PM Re: ENTITY TYPE CHANGE & BENEFICIAL OWNERSHIP aherbert
RockChucker, CAMS Offline
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Joined: Jul 2013
Posts: 1,676
The Country
Same as Randy, the old corporation no longer exists and cannot do business as a corporation.
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#2269755 - 04/28/22 01:20 PM Re: ENTITY TYPE CHANGE & BENEFICIAL OWNERSHIP aherbert
aherbert Offline
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Joined: Sep 2016
Posts: 20
Those were my thoughts as well. Thank you guys for the response!

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