Posted by Donna on September 19, 2003 at 12:17:26:
Since the federal government does not recognize an LLC, you have to file the federal return as something it does recognize: ie a C Corp, Sub S Corp, Partnership, or Sole proprietorship. For the most part, they leave it to you to choose which way you want to file. As for the state taxes, it depends on the state where the LLC is formed and where it operates. Each state has different tax rates and rules.
Can I Change S Corporation into an LLC. - Posted by sara
Posted by sara on August 22, 2003 at 06:27:07:
Since its creation my S Corporation did not do anything other than studying real estate investing. During the study I found that a LLC can limit my liability better, and can still be taxed just like a S Corporation. Is it possible to change my company into an LLC before my first deal that’s comming up soon?
Any answers, comments, thoughts? Thanks in advance.
Re: Can I Change C Corporation into an LLC. - Posted by Robert Leshnower
Posted by Robert Leshnower on September 12, 2003 at 08:46:06:
can I change a regular “C” corporation into a Limited Liability Company? or do I have to finalize the corporation and apply for a new name in order to set up a LLC?
Re: Can I Change S Corporation into an LLC. - Posted by Donna
Posted by Donna on August 22, 2003 at 09:59:07:
Yes, you can create a LLC before your first deal.
Basically, you dissolve your Sub S corporation and form a new legal entitiy- your LLC. (The articles of incorporation/formation are different for a Sub S and an LLC, so trying to just amend the articles does not typically work.)
LLC’s are only recognized at the state level (which is why you can still file your federal tax return as a Sub S) so the IRS may allow you to keep your initial FEIN but your state may not.
Talk to your state first. If you are truly looking for legal protection for your real estate deals, look into a Nevada LLC. There are pros and cons so don’t make a hasty decision.
Re: Can I Change S Corporation into an LLC. - Posted by BDS
Posted by BDS on September 17, 2003 at 17:31:17:
What are the state and federal tax consequences of change from S Corp to LLC?