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Category: Finance
Satisfied Customers: 4506
Experience:  Tax professional and business consultant for 35 years.
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Currently I have a company called " ABC Store, INC.

Customer Question

Currently I have a company called " ABC Store, INC. " as s-corp. Now I would like to create a parent company as ABC INC. and then put ABC Store as DBA. How can I change this legal structure? Please note, this is an establish business, so bank accounts, credit cards are linked to ABC Store Inc.Please note, ABC is not actual name of my company, but it is just used to explain my situation.Thank you!
Submitted: 1 year ago.
Category: Finance
Expert:  PDtax replied 1 year ago.

Hi from just Answer. I'm PDtax.

Corporate ownership of an S corp is not allowed. You might have to revoke your ABC Store Inc S status to have corporate ownership.

The other issues, such as changing the S corp name, are easily addressed, even online at your state secretary of state web portal.

Thanks fopr asking at Just Answer. Please rate my assistance using the star rating scale posted. I'm PDtax.

Customer: replied 1 year ago.
or how about - converting INC into LLC, then make this LLC - part of parent INC. Is it possible?Is LLC require to pay salary if it is going to pass all income to parent company? Parent company can be responsible to pay the salary.
Expert:  PDtax replied 1 year ago.

It may be possible in your state to directly convert your s corp to an LLC. Other states require a statutory merger of your s corp and a new LLC, with the LLC being the survivor entity.

You can set up the parent-child relationship so that the parent pays ask salaries.

Thanks again. Please rate my assistance using our rating scale. I'm PDtax.

Customer: replied 1 year ago.
thank you! I think LLC and INC as parent can make the things quite complex for now esp when the business is growing.What do you think about this idea?My existing company is ABC Store Inc.Lets change the name to ABC Inc.
then set up a DBA under ABC Inc.Is it easy enough process?In this way, I would able to use the same credit cards for all expenses. If at later stage, if business needs to be a separate entity, then I can consider to convert DBA into LLC and make that LLC child of the parent company ABC Inc. What do you think about this idea?
Expert:  PDtax replied 1 year ago.

I'm glad to discuss more ideas. I will offer a phone call to discuss your other ideas through our premium service offering. Accept, and we can discuss after lunch.