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How best to transfer personal items to llc filing as s-corp?

So I will be starting up an single owner LLC with s-corp tax status.  Whats the best way to transfer a personal item to the llc for resell?   Is it a contribution?  I am trying to keep this as simple as possible. I may sell 80 items a year. I just want to officially move or transfer an item as it sells to the llc with the best tax results. 

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2 Replies
M-MTax
Level 10

How best to transfer personal items to llc filing as s-corp?

It's a contribution and increases your basis. 

How best to transfer personal items to llc filing as s-corp?

Are you aware of the additional expenses, work and requirements for being taxed as a S-corporation?

 

Although you only provided limited information about what you are trying to do, being taxed as a S-corporation sounds like it COULD be the worst possible tax result.

 

NEVER choose to be taxed as a S-corporation without sitting down with a GOOD tax professional to determine if that is your best option.  In MANY cases it is NOT a good option.  So please schedule an appointment with a good tax professional so they can analyze your specific situation to help you determine the best outcome for you.

 

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