Llc

[Unregistered]

Client Gas station - formed scorp this year and now after three months wants to conver to LLC.

I have not done conversion from "S" to LLC?

Any help would be appreciated

[Bees Knees]

A conversion from an LLC to an S corp is a tax free conversion. A conversion from an S corp to an LLC is treated as a liquidation and re-contribution to an LLC....taxable. No big deal if there aren't any appreciated assets inside the corporation to tax.

[jainen]

No big deal

>>No big deal <<

A liquidation does not dissolve the corporation. There may well be legal complications under state law, such as the need to notify creditors for a period of time before assets can be distributed.

Also, a gas station always has potential liability from soil contamination. He should consider the pros and cons of going into the chain of title to that soil.