Converting Sole Proprietorship to LLC

[greenftechn]

This question regards tax and recordkeeping for transfer of assets from a sole proprietorship to an LLC that replaces it. I have a Bill of Sale for all assets, including inventory. Do I price assets at fair market value, when they may have already been costed out via depreciation or Schedule 179? If so, will that not create a tax obligation and maybe other consequences? Inventory will transfer at avg cost, the method used in the sole proprietorship.

 

[army judge]

You need to consult a CPA or a tax attorney.
Don't trust your livelihood to anonymous strangers on the Internet.
You purchased a business, spend a few bucks for proper tax advice, don't gamble where the tax authorities are concerned.


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[guestposter]

You can be relatively sure that I will independently verify any advice I receive via an Internet forum.

 

[Michael Wechsler]

Agreed. If you're going to do this right, someone has to get a good look at the entire business. Online will help you gain perspective but not answer things like this the way they need to be answered.