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RD, Certified Public Accountant (CPA)
Category: Tax
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Dear CPA, I want to convert my S. Corp. (started and registered

Resolved Question:

Dear CPA,

I want to convert my S. Corp. (started and registered in MN in 2003) into a Nevada LLC with the s corp. election. Although I live in MN it is an internet business, I don't really operated the business or do business in MN. 99% of the internet sales are from outside MN. I have no employees. All my subcontractors, services I use are outside MN or the USA. If I use a Nevada LLC do I have to also register with the Secretary of State in MN too and pay state incorporations fees each year?

All details explanations are very helpful and greatly appreciated.

Thanks,

Mark
Submitted: 5 years ago.
Category: Tax
Expert:  RD replied 5 years ago.

The easiest way would be to form a LLC in Nevada and file for S election and close your current S Corp in MN.

 

Even if the business is not carried on in MN, since you are a resident of MN and are also an employee of the S Corp- there is a business nexuss in MN and hence you will have to register the Nevada LLC as a foreign corp in MN and pay renewal fees each year to the State.

 

 

Let me know if you have any question.

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

 

RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience: CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
RD and 4 other Tax Specialists are ready to help you
Customer: replied 5 years ago.
Wasn't helpful. Too brief..
Customer: replied 5 years ago.
I'm going to accept and pay this. However, I prefer to get questions answered from different CPAs in the future. You usually tell me what I already with misspelled words and don't add enough information I can use for the several business I own.
Customer: replied 5 years ago.
I'm going to accept and pay this. However, please don't answer anymore of my questions in the future. You usually tell me what I already know with misspelled words and don't add enough information I can use for the several business I own.

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