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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110479
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I had a sole proprietor business that I incorporated at the

Customer Question

I had a sole proprietor business that I incorporated at the beginning of 2009. I transferred all my equipment for use in this corporation. Am I supposed to "officially" transfer it to the corporation in some way? I don't want to get double taxed on it, preferably.
Submitted: 7 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 7 years ago.
Did you incorporate as a C-corp or an LLC?
Customer: replied 7 years ago.
I incorporated as a S-corp and sent in my Form 2553 (sent registered and they received 1/27/09) but did not receive anything back showing it was accepted. I am supposed to be S-corp though.
Expert:  Law Educator, Esq. replied 7 years ago.
All you need to do is a written document that states all of the property and assets of the SP were transferred to the S-corp and there is no tax liability since you have merely transferred ownership of your property to your own S-corp. This is not something that is a taxable event.

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Customer: replied 7 years ago.
Just a quick follow-up. Does the written document need to detail all of the equipment and estimated worth?
Expert:  Law Educator, Esq. replied 7 years ago.
No, you should just document an itemized list of the equipment that was transferred over to the corporation from the SP to be placed into the corporate records in case you decide you want to sell the S-corp at a later date there is a record of what is the property of the S-corp.