Hi Guys, have some questions here.
My company is a music publishing business and i am building a tech platform to automate/scale. I am currently organized as a Delaware based LLC with S corp tax election (solo member LLC), but living in Florida. I know that i need to file foreign registration with Delaware to do business in Florida, and i haven't done that yet.
For 2024, I plan to pay taxes as S corp (have paid myself a salary through gusto), and then i'll take the additional profits as a k1.
For 2025 and going forward, I think I want to convert to my business from an LLC (s corp) to a C corp for the QSBS $10m gain exclusion, and to potentially take on investors. I've heard that a good way to organize is to keep a personal consulting LLC (with s corp election) for myself to bill the C corp for my services.
Questions:
1) Given my scenario, is my thinking to switch to a C corp and organizing my business like this a good idea?
2) If i proceed, should i switch to from LLC to C corp first, and then file as a foreign entity in Florida?
3) If i proceed, what are the steps to get approved with the QSBS so i don't have issues with it when i sell in 5+ years?
4) Is there a sequence I should take in terms of notifying sos of delaware first or notifying IRS first?
5) Assuming i don't need a new EIN, but that I would then need to notify my bank of the change and fill out a new C corp w9 with all my vendors?
For reference, this year my company will do approx ~2m topline revenue and 400k gross profit, but i think I could 10x easily over the next 5 years. Currently no other employees, but i see myself hiring employees in 2025.
