juro wrote:Why would anyone want to do this? Being a disregarded entity is not for me.
JR1 wrote:Always love when folks want to convert out of a corp.
Is that done with a *taxable* conversion, or a *non-taxable* conversion? And does it require an new EIN?It is common to convert a corporation that is an S corporation to an LLC that is taxed as an S corporation.
JR1 wrote:OK, let me expand. There is no such thing on the IRS level of converting a corp. What your state allows has NOTHING to do with tax law. You MUST liquidate the corp, recognize gains...and then start over.
JR1 wrote:OK, let me expand. There is no such thing on the IRS level of converting a corp. What your state allows has NOTHING to do with tax law. You MUST liquidate the corp, recognize gains...and then start over.
jon wrote:I am not sure why you would go to 368 to go from a S Corp to an LLC who has already elected S Corp treatment accomplishes anything tax wise. Attorneys have said they do not even like LLCs electing S unless you rewrite the LLC articles and other items to make sure they reflect you ARE an S Corp and not a LLC. As they say required terminology that fits for one does not fit the other!!
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