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Talking with multiple accountants before last setting up my LLC, all said don't think of doing anything but setting it up as a S-Corp with the IRS unless we're
by gte910h 17y ago
Talking with multiple accountants before last setting up my LLC, all said don't think of doing anything but setting it up as a S-Corp with the IRS unless we're going to have huge, yearly losses.
It doesn't seem like it's that many steps there to turn an S-Corp filing LLC into a C-Corp.
Additionally, I do not see why the LLC (Esp an S-Corp or C-Corp filing type) cannot just sell itself to a newly founded C-Corp.
- gcv 17y agoI think it can, but the sale counts as a liquidity event, which means the LLC's members must pay taxes on the income they derive from the sale. That's why you have to get bulletproof tax advice. In addition, there may be issues with securities laws, so you also need an expensive lawyer experienced in dealing with this problem.
- gte910h 17y agoSecurities laws are mostly about the sale of public companies and the purchases of public companies.
- watchandwait 17y agoSecurities law governs all corporate fundraising including angel investing in privately held companies.
- pjhyett 17y agoLLC conversion to C-Corp can be done (we did it), but it was certainly a headache. Letting our lawyer and CPA take care of everything but our signatures was well worth the money.
- gte910h 17y agoWhich state? Did you like the job they did? Want to share their names?
- pjhyett 17y agoCalifornia. Alan Lewis is our lawyer (alan@alanlewislaw.com) and Alan Watters is our CPA (awatters@krohngodby.com). No complaints working with these guys and they're not terribly expensive (relatively speaking).