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patmag
Level 3

Dissolving S Corp and starting a new company

Hello. My S Corp was filed in NY. I moved to Florida and because of the virus I lost all my clients. I want to dissolve the S Corp and start a new business registered in FL. Since I am starting fresh it might be better to open an LLC instead of S Corp.

 

Would you agree that LLC would be better for a new company without any income yet?

 

The S Corp was using 70% of my personal vehicle. My CPA claimed that car as an Asset on tax return. I also have some electronic devices which were reported as business expense on previous tax returns. I run the business from a home office. Can I sell any devices or assets for the new company in this case?

 

What is the best and most beneficial way of dissolving the old company and opening a new one? 

 

I would really appreciate if someone could help. Thank you!

1 Best answer

Accepted Solutions
tagteam
Level 15

Dissolving S Corp and starting a new company

You should really discuss your situation with a legal and a tax professional before taking any action one way or the other.

 

One fact to keep in mind is if you register a new LLC and you are the only member then, unless you make an election to be taxed as a corporation (S or C), your LLC will be treated as a disregarded entity for federal income tax purposes (you will file on Schedule C for the company).

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1 Reply
tagteam
Level 15

Dissolving S Corp and starting a new company

You should really discuss your situation with a legal and a tax professional before taking any action one way or the other.

 

One fact to keep in mind is if you register a new LLC and you are the only member then, unless you make an election to be taxed as a corporation (S or C), your LLC will be treated as a disregarded entity for federal income tax purposes (you will file on Schedule C for the company).

View solution in original post

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