Thank you for your question.
To determine whether a change of form or an S Corporation
designation are recommended, I need to first make sure that you understand some basics.
An S corporation designation is simply an election that a business
entity makes with the IRS which allows pass through taxation. In other words, an S corp election allows a corporation
(or other incorporated business entity) to be taxed like a partnership
. In other words, the corporate income is not taxed at the corporate level, but is taxed on the individual shareholders as individual income. Where a corporation only has a few shareholders, this is advisable.
A limited liability corporation (LLC) is a corporate form which allows for a corporate shield for the owners without some of the corporate formalities involved with an INC and also allows pass through taxation (like an S Corp). However, an LLC may never be taken public. Thus, if this is an eventual goal of the corporation, then it is not recommended.
In your situation, you want to eventually sell your assets and retire, and thus are inquiring into whether either of these forms are recommended.
How many shareholders are there in the corporation other than you?
Do you wish for the corporation to be resolved?
What kind of assets are we talking about?
I look forward to hearing back from you.