Wednesday, April 1, 2015

If I decide to convert a C Corp to an S Corp, will all the assets and liabilities be transferred to the S Corp?

Question

If I decide to convert a C Corp to an S Corp, will all the assets and liabilities be transferred to the S Corp?



Answer

It is the same corporation. There is no conversion... The assets and liabilities do not go anywhere... the change in status is just an election on how the corporation is taxed. There are many ramifications to the change, including the issue in dealing with the built in gains tax. I suggest you meet with your CPA and go over all the issues before you make this election.



No comments:

Post a Comment