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I have a standard LLC in Wisconsin tax as single entity. I

I have a standard LLC...
I have a standard LLC in Wisconsin tax as single entity. I do not live in Wisconsin anymore and would like to move my company to Wyoming and change the company to be taxed as a C corp. Would it be better to file for the tax change in Wisconsin first and then move the company to Wyoming, or the other way around? Or would it be better to keep the LLC and start a new LLC in Wyoming and have it taxed as a C-corp and have the existing LLC own the new Wyoming company?
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Answered in 9 minutes by:
3/16/2013
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,855
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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NPVAdvisor :

Hi ther me again ....( thought I'd give someone else a chance to answer, but your question's still out there) so ...

NPVAdvisor :

This would essentially be a cost/ benefit analysis .... that s to say ...

Customer:

I am more worried about tax penalites

Customer:

is there a standard way to do it?

Customer:

a preferred way

NPVAdvisor :

look at the costs, to wrap up the existing LLC , unless you want to do some really atypical stuff with sharing of partnership (LLC) losses and/or gains, etc through the LLC, adn just start a C-Corp in Wyoming

NPVAdvisor :

If you don't wind up operations for the LLC

NPVAdvisor :

you'll have to keep doing tax returns for it

NPVAdvisor :

a corporation goes on forever, unless you mdissolve it

NPVAdvisor :

I think it would be cleanest just to pay the nomimal fee to closed dow the LLC with Wisconsin and the start a new C-Corp in Wyoming

Customer:

what about merge

NPVAdvisor :

you'll have to file with the sec of state in Wyoming for the new Corp regardless

NPVAdvisor :

I guess ... can't see a financial or tax reason

NPVAdvisor :

do you have NOL carryovers?

Customer:

I am totally clueless on this... I have credit history and good standing for over 4 years and would like to make things as painless as possible. Plus there is a good sum of funds in the bank.

Customer:

found this on moving http://www.bizfilings.com/learn/moving-business.aspx

Customer:

Maybe this... (last option) Form an LLC in the new state and merge the existing LLC into it. This is viewed as a continuation of the old LLC and no new federal EIN is required. There are also no immediate tax consequences, provided LLC members from the old state continue to own at least a 50% interest in the capital and profits of the LLC in the new state.

NPVAdvisor :

Since the LLC is a passthrough, and it sound like you don't have any lingering debts against the company (both LLC and C-Corp provide that veil, that protection of personal assets from business creditors) I can't see any reason to continue the LLC

Customer:

Then file so its tax as a C corp afterward?

NPVAdvisor :

might be a lot less headache and a nice fresh start to simply start the new business "clean," if you will

Customer:

I can... that tax id gives me history as a line of credit. Without it I have to wait 2 years to get a new AMEX card

NPVAdvisor :

Yep, certainly less paperwork to just file with sec of state in Wyoming

NPVAdvisor :

OK .. maybe ... I actually wokred for AMEX from 1991 until 2001

NPVAdvisor :

their lareg market card went agains corporate credit ... but the small business card (if you read the fine print really looks at your personal credit anyway

NPVAdvisor :

Remember the LLC is a passthrough ... they'll simply look at everything you AND your business dealings .. from a credit underwriting perspective

Customer:

ok... just wanted to make sure I avoided any obvious mistakes

NPVAdvisor :

Only VERY large corporations get the AMEX card based on business credit alone ... (remember how they asked for YOUR ss number?)

Customer:

I would like to work to get business credit... and seperate my personal credit.

Customer:

any advise?

Customer:

my business is based on overseas work... and use my AMEX card exclusively to fund their work

NPVAdvisor :

Most credit card issuers look at both until you get a certain number of employees or gross sales ... I would ask each specific company where they make that cutoff

NPVAdvisor :

AMEX certainly works best internationally

Customer:

ok... thanks. Have a wonderful weekend.

Customer:

Cheers :)

NPVAdvisor :

u2, and good luck! ... I'm curious, what does you business do?

Customer:

My US business is a business solutions provider. Marketing and technology. Most of the income is creating custom business web apps.

NPVAdvisor :

Cool

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,855
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Lane and 87 other Tax Specialists are ready to help you
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Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,855
12,855 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

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