S corp want to become LLC

[oceanlovin'ea]

My client has a s corp. He has been told that his company should be a LLC. Can an established corporation become a LLC?

Or would he have to form a new corporation, apply for LLC in the state of Florida. Then apply for s status?

He took a very large section 179 deduction in 2003 that if the corporation was closed or disolved he would be liable for recapture. So I don't think that is in his best interests.

Any suggestions?

I haven't been on the board lately. Need to catch up on my reading.

Thanks, Linda F

[John of PA]

S corp/LLC

I don't see how an S Corp could transform into an LLC; they are two separate structures. I would wait until the 179 recapture problem get behind you, then liquidate the Corp, then form an LLC. Or, Perhaps both entities can operate simutaniously for a while, if it can be justified.