Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I am thinking of converting my s corp to LLC. i have filed

Customer Question
for the EIN, sales tax...
I am thinking of converting my s corp to LLC. i have filed for the EIN, sales tax certificate and have done some business since ***** ***** under the S-corp. i was misguided and do not think the s is best so i don't have to deal with actual payroll. The company is part time, maybe will make 10K profit at the end of the year
JA: Thanks. Can you give me any more details about your issue?
Customer: my intention was to have a separate tax return for personal and the business. i was told an s would do that, however now i see it will not. I also didn't realize i would have to do reasonable wages, so that would mean payroll taxes, remittance of taxes ect....more work than it is worth for a part time seasonal job (actually my husband does the work, i do the books)
JA: OK got it. Last thing — Tax Professionals generally expect a deposit of about $32 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 1 year ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 11 minutes by:
2/19/2016
Tax Professional: Lev, Tax Advisor replied 1 year ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,339
Experience: Taxes, Immigration, Labor Relations
Verified

First of all - we need to know HOW you got S-corporation.
There are generally two ways - (1) you registered LLC and elect it to be taxed as S-corporation, or (2) you registered a corporation and elect S-corporation tax treatment;

In either way - you may revoke your election.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 1 year ago

Assuming you used the first option - How the LLC will be taxed after revoking S-corporation election depends how many members that LLC has.
If that is a single member LLC - it will be disregarded entity - and all income and deductions woudl be reported on your individual tax return - schedule C.

But if you want to revoke original election - you will need to file the SAME form as you used when election was originally made.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 1 year ago

https://www.irs.gov/pub/irs-wd/10-0249.pdf

An S corporation election may be revoked only if shareholders holding more than
one-half of the shares of stock of the corporation on the day on which the revocation is
made consent to the revocation. Section 1362(d)(1)(B). A revocation made during the
taxable year and on or before the 15th day of the third month shall effective on the first
day of such taxable year. Section 1362(d)(1)(C)(i). A revocation made during the
taxable year but after such 15th day shall be effective on the first day of the following tax
year. Section 1362(d)(1)(C)(ii). If the revocation specifies a date for revocation which is
on or after the day on which the revocation is made, the revocation shall be effective on
or after the date so specified. Section 1362(d)(1)(D).
To revoke an S corporation election, the corporation files a statement that it is
revoking the election under § 1362(a). This statement must be filed with the service
center where the S corporation election was properly filed. The revocation statement
must include the number of shares of stock (including non-voting stock) issued and
outstanding at the time the revocation is made. In addition, the revocation statement
must be accompanied by the consent of shareholders holding more than one-half of the

issued and outstanding shares of stock. A shareholder consent must be in the form of a
written statement that sets forth the name, address, and taxpayer identification number
of the shareholder, the number of shares of stock owned by the shareholder, the date
(or dates) on which the stock was acquired, the date on which the shareholder’s tax
year ends, the name of the S corporation, the corporation’s taxpayer identification
number, and that the shareholder consents to the revocation. This statement must be
signed by the shareholder under penalties of perjury. Section 1.1362-6 of the Income
Tax Regulations.

.

I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all tax related issues.

Ask Your Own Tax Question
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,339
30,339 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,336 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,906 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Chad, I have a Schedule C realtor that turn 70 August of
Chad,I have a Schedule C realtor that turn 70 August of 2017. She will have earned income from her Schedule C. Is she allowed to contribute to a Traditional IRA and/or SEP IRA for 2017? If she has sel… read more
Lev
Lev
Tax Advisor
30,339 satisfied customers
Penalty for late filing of partnership LLC tax return, not
Penalty for late filing of partnership LLC tax return, not eligible for Rev Proc 84-35 relief because one of the partners is a foriegner… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,613 satisfied customers
Under the new tax plan, can a Schedule C proprietor still
Under the new tax plan, can a Schedule C proprietor still deduct her health insurance premiums on page 1 of Form 1040 & are there any medical expenses she can still deduct on Schedule A (if they excee… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
886 satisfied customers
On a schedule c who do you put as the proprietor if it is a
on a schedule c who do you put as the proprietor if it is a newspaper route and you are given a 1099-misc … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
71 satisfied customers
Is income from an LLC passed through to personal tax return
Is income from an LLC passed through to personal tax return considered earned income, enabling me to contribute to a traditional IRA?… read more
abci168
abci168
Principal
27 satisfied customers
A dentist sells his Schedule C dental practice for 190,000
A dentist sells his Schedule C dental practice for 190,000 in 2016. Please note he began the practice in 1998. Additionally, please note he filed a joint return with his wife in 2016. The 190,000 was … read more
taxmanrog
taxmanrog
Master\u0027s Degree
725 satisfied customers
Is the interest one pays on a personal loan a tax deduction?
Is the interest one pays on a personal loan a tax deduction? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,613 satisfied customers
0n sale of personal resonance. What is tax on sale. I
I understand that if you lived in the home for at least two years . there is no tax on the sale.true or not… read more
abci168
abci168
Principal
27 satisfied customers
Can my LLC with US and Foreign members be a shareholder in
Can my LLC with US and Foreign members be a shareholder in an S Corporation? The K-1 would go to the LLC.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,906 satisfied customers
I am a personal injury attorney doing a schedule c as we
I am a personal injury attorney doing a schedule c as we speak. . … read more
Lev
Lev
Tax Advisor
30,339 satisfied customers
Small schedule c business donates fully depreciated
small schedule c business donates fully depreciated furniture to charity. They've been told that the FMV is $1,000. What is the deduction for contributed property? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Where can I get the Federal income tax regulation? Where can
Where can I get the Federal income tax regulation? … read more
Lev
Lev
Tax Advisor
30,339 satisfied customers
I'm doing my 2016 individual tax return. I sold my home in
I'm doing my 2016 individual tax return. I sold my home in 2016. I rented rooms in my personal residence (which I sold in 2016) I took depreciation. I understand that I am subject to depreciation reca… read more
Amanda Russell
Amanda Russell
Accounting Tax & Profit Strategist
Master\u0027s Degree
9 satisfied customers
Adjusted individual tax return for 2014(Iowa),says no
Adjusted individual tax return for 2014(Iowa),says no response to letter of inquiry,disallowed health insurance. deduction.says my wife and I owe$600.00.she called # and was told to show proof of insu… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
A taxpayer, Form 1040 Schedule C, is on the cash basis. The
A taxpayer, Form 1040 Schedule C, is on the cash basis. The average revenue for the last 5 years is $5,100,000. There is no inventory. The NAICS is 423600Can he remain on the cash basis?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If person A sales a used car to person, is a sales tax
If person A sales a used car to person B, is a sales tax required to be paid by either party? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,252 satisfied customers
If a taxpayer never filed any payroll tax returns since the
If a taxpayer never filed any payroll tax returns since the incorporation of his single shareholder S-Corp in 2014 but has made distributions to the shareholder every year, how does he come in complia… read more
Brian Michels
Brian Michels
Partner, CPA
Bachelors of Business Administration
154 satisfied customers
Is a tax refund on a decedent's individual tax return
is a tax refund on a decedent's individual tax return includible in the decedent's estate (Form 706) AND/OR the decedent's estate income tax return (Form 1041)? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
886 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x