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LawTalk
LawTalk, Attorney
Category: Business Law
Satisfied Customers: 37854
Experience:  I have 25 years experience in the practice of law.
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What happens to 100% owner of an S Corp if he dies, SC and

Customer Question

What happens to 100% owner of an S Corp if he dies
JA: What state are you in? And have you consulted a local attorney?
Customer: SC and no have not consulted a lawyer...
JA: Has anything been officially filed? If so, what?
Customer: I inherited preparing his tax returns and need to discuss this issue and I am not familiar with what he needs to do. He has been operating for several years as a 100% shareholder.
JA: Anything else you want the lawyer to know before I connect you?
Customer: Don't think so......
Submitted: 4 months ago.
Category: Business Law
Expert:  LawTalk replied 4 months ago.

Good morning,

I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.

When the 100% owner of a corporation, or an LLC, dies, the estate of the deceased then owns the corporation and probate must be opened by a court filing so that an Administrator of the Estate can be appointed by the court to take over the handling of the corporation. Whether the corporation is to be continued---because it is an operational business, or the corporation needs to be wound down and dissolved under the laws of the state of incorporation, someone with legal authority to operate the corporation must step in. And that can only be done by a legal representative of the estate.

So, if probate has not yet been filed for this deceased, it will need to be done so that the corporation can be dealt with. A local probate attorney will be able to assist you with the probate filing and a corporation attorney will be able to guide you through the dissolution process if the corporation is to be dissolved as opposed to being sold to a buyer, or continued on by the Estate and then the heirs of the deceased.

You may reply back to me again if you have additional questions, and I will continue to assist you.

I am not an employee of this site and I am only paid for helping you when you rate my service to you. Please remember to rate my service to you by clicking on the rating stars on your screen (preferably 5-Stars) so that I can be compensated for helping you. Thank you in advance.

I wish you and yours well in 2017,

Doug

Expert:  LawTalk replied 4 months ago.

Good morning,

Is there anything else I can assist you with today? It is possible that your questions and issues might be better served by an in-depth conversation with me. If you are interested, for a very nominal charge I can offer you a private phone conference.

Please know that I answered your question in good faith, providing you with the information that you asked for, and I did that with the expectation that you would act likewise and rate my service to you. If I have already provided you with the information you asked for and you have no additional questions, would you please now rate my service to you by clicking on the rating stars so that I can be compensated for assisting you? Rating me costs you nothing as you have already paid the deposit for my help. All rating does is ensure that I am paid for my time in working with you.

Thanks in advance for your rating of my service. It is greatly appreciated.

I wish you the best in 2017,

Doug