We've been an S Corp since 1991. (Machine Shop) The business
was downsized in 2006, and currently has only the two owners/officers as employees (a husband and wife)with one part time person who comes in only when needed. We are no longer operating like a legal S Corp in ways such as maintaining annual meeting minutes, the wife (VP/Secretary), who has another outside part time job but still maintains the S Corp's books, does not take a salary, the Pres/Treasurer (husband) takes very little salary and not on a regular payroll schedule. Basically, we are 60 yrs old, just wanting to maintain the business for 5-6 yrs until full retirement. We have enough personal savings to retire but need the business to pay for itself and our health insurance costs until we can draw full retirement benefits. In 2014, we sold our business property, which was much more than we currently need, for a smaller commercial property. The sale was structured as a Reverse 1031 Exchange, which required us to set up an LLC
to hold title of acquired property until the existing property was sold. The LLC is still in existence, treated as a subsidiary
of the S Corp, and the property (building and lot) is still titled to that LLC. All other business operations are run as and business property (such as manufacturing & office equipment, etc) is owned by the S Corp. While we'd prefer to change the business to a sole proprietorship, the liability to personal assets probably makes that a bad idea. That's unfortunate since that most closely resembles our current operation. However, we are wondering if it would be a better idea, at this point in our career, considering the reality of our current operating practices
and in light of the fact that an LLC already exists, to dissolve the S Corp and operate as the existing LLC (changing the current name of the LLC to the current name of the S Corp) (Would the LLC be less complicated with fewer legal requirements, record keeping requirements and easier taxation issues?). Any advice would be much appreciated.