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Hi, my name is Mark. I will be happy to help you with your questions. From an administrative standpoint it would make more sense to do the conversion on 1/1/2017. This will prevent you from having to do a short year LLC and C-Corporation return. I assume that the LLC is profitable?
Why are you converting to a C-Corporation?
Adding shareholders would not be a taxable event. You would increase the cash and equity portion of your balance sheet. The valuation of the LLC would be based on a number of factors including the industry, sales, sales growth (to name just a few).
The benefit that investors would have is if they receive section 1202 treatment on their stock. Section 1202 involves sale of qualified small business stock. The gain from the sale of the stock is excluded from taxes up to a total amount of $10 million.