When dissolving a NYS LLC taxed as an S-Corp, besides filing a final return and making sure shareholder pays normal income tax on the amount on final K-1 with their next 1040 return, are there any tax implications for the actual cash left in the business bank account?
Or it literally just goes to the shareholders personal account and no further tax at all is paid and shareholder keeps it? Single shareholder in this case. No debt or people needing to be repaid by company, no outstanding taxes due.
Ahh okay that makes sense. So it gets taxed to the shareholder as a capital gain since the distribution is for the sale of stock? I say sale of stock because isn't this what is going on with the dissolution? The shareholder returns all their stock in exchange for the remaining cash/assets.
Ok ... you were talking apples and oranges and now tossed in bananas as well ... if you are selling your position in an investment then you will report the sale on the Sch D and/or form 4797 to report the gain or loss. I highly recommend you seek local professional guidance with this complicated situation if you don't understand it fully or upgrade to the LIVE version for one on one guidance and review.
Haha, I definitely plan on it, wanted to have a basic understanding first of the possible scenarios. Definitely not an "investment" in the company as sole shareholder started the company and built it.
As the only shareholder of a corporation, that is not publically sold on the stock market, there are rules to be followed ... seek consultation with a local pro before you sell to be educated as the penalties of doing it wrong can be costly.