Llc

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  • Unregistered
    #1

    Llc

    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
    Tags: None
    • Bees Knees
      Senior Member
      • May 2005
      • 5456
      #2
      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.

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        • jainen
          Banned
          • Jul 2005
          • 2215
          #3
          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.

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