capital80014 Posted March 9, 2016 Report Share Posted March 9, 2016 Hello everyone. I have a new client who's business is set as an S Corp and never had a payroll system in place. Now, he wants to become an LLC since he doesn't make as much as he used to and also to be in compliance with the IRS Looking in the IRS website, I've only came across forms to do the opposite ( LLC TO S CORP) Any help about how to do the conversion is appriciate it Thanks Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 9, 2016 Report Share Posted March 9, 2016 He's just dissolving the S corp (a taxable event) and putting the assets into a sole proprietorship. He may want to rethink that, unless there aren't many assets in the business. 1 Quote Link to comment Share on other sites More sharing options...
capital80014 Posted March 9, 2016 Author Report Share Posted March 9, 2016 The only reason why this client wants to convert from S corp to LLC is because he doesn't want to run a payroll system. his currents assets aren't that much. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 9, 2016 Report Share Posted March 9, 2016 Was the S-Corp originally a C-Corp that elected S-Corp status? Was the S-Corp originally an LLC that elected S-Corp status? If he has employees, even if he becomes a sole proprietor, he will still need Payroll. Too much missing information for us to give you any correct advice. Do YOU understand the difference between an LLC, a sole proprietorship, a C-Corp or a Partnership? This is a very basic corporate question. 1 Quote Link to comment Share on other sites More sharing options...
capital80014 Posted March 10, 2016 Author Report Share Posted March 10, 2016 Hey Jack, Sorry for the lack of detail in my question. crazy long day! It's a single member S Corp, It used to be an LLC 5 years ago(I'm familiar with the 60 months limitation rules) I do understand the difference between the 4 types of corporate structure. i'm in first year doing taxes and bookkeeping, so i'm not deeply submerged in the different forms and implementations. Again, I apologize for not being clear enough and truly appreciate everyone's time. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 10, 2016 Report Share Posted March 10, 2016 Well then, now that we have the relevant information, all you need to do is revoke the S Election no later than March 15th. Quote Link to comment Share on other sites More sharing options...
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