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convert C Corp to LLC - tax issues?

by BillJ1234, Window Shopper

  • Created: July 9, 2009, 11:13 am
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2 comments

Our attorney has suggested we change our C Corp. to an LLC. I am concerned that this will be a taxable change for the owner.  Sole shareholder to single member LLC.  (No losses involved)

 

Will this be deemed a liquidation and make the owner subject to tax of the fair market value of assets less his stock basis?

 

Is there an exception if the LLC uses Corp. tax option to file?

Tags: Discuss Popular Topics, Filing and Paying Taxes
‹ My company is a creditor against another bus. that has filed bankruptcy. There filing was sept 08. Would I be Sole Proprietor or Partnership? ›

jbeidle | Contributor | 7/14/2009 - 4:03 pm

If you have built in gains on assets, there could be tax consequences.    It is very difficult to tell from your description. 
Professional Web Site: http://TaxPanningStL.com

CharlotteW | Former Moderator | 7/9/2009 - 11:44 am

Thanks so much for posting this question in the Community. I am moving this post to the Loans, Grants, & Taxes Board where more tax and business structure experts will be able respond.