Can I easily convert a Sub S corp to an LLC?

Since I am a CPA, in NY state my accounting business can no longer be a Sub S so I need to convert to a PC, PLLC, or an LLP Asked by CarolM 25 months ago Similar questions: easily convert corp LLC Business.

Similar questions: easily convert corp LLC.

Easily convert a Sub S corp to an LLC Assuming you don't take a salary when you have losses, the main difference is when you make money. All profits of an LLC (Sole Prop or Partnership) are subject to self employment tax, 15.3% of the first $106,800 and 2.9% of anything over that. An S Corp is required to pay reasonable compensation to its shareholder/officer/employees.

That reasonable compensation is typically W-2 FICA taxable wages in the same rates and amounts as SE income above. However, health benefits count toward reasonable comp, but are not FICA taxable. Health and retirement contributions are not FICA taxed on S Corp principals, but they are SE taxed on Sole Props and Partners.My vote is usually to stay an LLC.

* There are virually no ownership restrictions; number, entity, status. * You can issue converible debt if you have a potential investor. * Partners can agree on how everything will be split; profits, capital, distributions etc. S Corp shareholder MUST do everything according to % ownership.

You can still achieve virtually identical results. You just have to jump through more hoops. * S Corp distributions don't count for retirement contribution calculations currently.

Depending on the size/profitablility of the company, this can be significant. * Having a strong wage/SE Income history can allow you to set up a very beneficial retirement plan if/when you sell the business. (way to detailed to get into here)I don't know the specifics of your situation.

This is not advice.It is general information. Feel free to contact me for any more specifics. Sources: http://smallbusinessonlinecommunity.bankofamerica.com/thread/14658 .

Should Your Incorporate Your New Business or Convert Your LLC to an S Corporation for tax purposes Should Your Incorporate Your New Business or Convert Your LLC to an S Corporation for tax purposesRecently I received an inquiry from my website which is listed below:I found your website...love the Christian approach. I'm in need of a Profit and Loss statement from a CPA quickly for a loan modification I've applied for. I am a Realtor...and have some minor expenses from my commission checks.

I can drum up receipts for the desk fee and website fee, but the rest is minor for gas (lunches with prospects) and one rebate I have not gotten a cashed check back for. They don't add up to much, and would almost be willing to take them out if you would have to have receipts to prepare? I need this very quickly or we might lose our loan mod.

Any help you can give me would be greatly appreciated. Incorporating your business and knowing what is best from Day 1 is what your CPA may be best utilized for to protect you personally, legally mitigate your income taxes and planning for your retirement. Below is my response to the client's inquiry:Thanks for visiting www.com I can certainly help you quickly with your need but would need to talk to you further and to get a copy of your prior personal return in order to gain a good understanding of your business and to advise/quote accordingly.

Feel free to give me a call and I will be happy to discuss. If you have not yet incorporated might I suggest you review the article on our web-site at http://www.hiscpa.com/article2.html as being an S Corporation might both legally save you taxes as well as limit you personally from corporate liability. Also if you have already incorporated your business as an LLC, we can look to convert your business to an S Corporation for tax purposes and potentially also legally limiting your annual tax oblations.

I look forward to hearing from you soon. Sources: http://www.christianpost.com/blogs/cpa/2009/11/should-your-incorporate-your-new-business-or-convert-your-llc-to-an-s-corporation-for-tax-purposes-20/ .

I am trying to start-up a business. I have formed an LLC, but I do not know how to properly manage it. Any good websites?" "how can I ask someone out easily?

" "How do I convert from a Subchapter S corp to a not-for-profit? " "hi .....do I still have stock options if LLC I m working in doesn't become C corp as planned? Can I vest those stock opt?

" "how do I convert j to j/s? " "We have had a S Corp for many years. We recently started an unrealted business and formed an LLC for it.

Can we combine? " "I'm looking to set up a company in Georgia. I need advice regarding LLC or Corporation, and then S-Corp status.

" "for a small retail business, which is better a llc or s-corp as far as taxes are concerned. " "can I convert "baskin robins" franchise business to my own brand ice cream shop?" "How to UNDO an LLC that elected to be taxed as an S Corp?

I am trying to start-up a business. I have formed an LLC, but I do not know how to properly manage it. Any good websites?

We have had a S Corp for many years. We recently started an unrealted business and formed an LLC for it. Can we combine?

I'm looking to set up a company in Georgia. I need advice regarding LLC or Corporation, and then S-Corp status.

For a small retail business, which is better a llc or s-corp as far as taxes are concerned.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.