Moved from IL to FL - Have S Corp and want advice about keeping s corp or going LLC

[cryptor]

Hi,

So I recently moved from IL where I had my business set up as an S Corp. I'm now in FL and have been told that I should change my s corp to an LLC. But a little background for my business, not sure if you need this info. It is an internet business that makes its money from ads and paid memberships. It started at the end of 05.

From the advice I was given (by a non-lawyer) was to transfer my s corp to FL and to change it to an LLC. And then have a new s corp own that LLC. The only thing is, by doing the ownership transfer, won't I have to essentially "sell" it to my new business (since I'm the sole member of the current s corp)? Or can this be avoided? Is it good to have this structure? Should both companies be based out of FL or should I go with another state like Delaware (that I've heard has good protection for businesses? I've heard that FL s corps and llc's are good for businesses as well but I don't know where to look (and what I'm reading) to know if it really is, hence the reason for this post.

Reason behind having the S corp own the LLC is so the new businesses I'm looking to open up will also be owned by the s corp and essentially have only 1 tax return to deal with.

Thank you ahead of time for any insight you can bring to my dilemma.

 

[army judge]

This is far too complex and complicated for our little FREE website.

If this is your business, spend money to protect it.

Hire an attorney and/or a CPA to give you prope legal advice.

Don't trust your livelihood to anonymous strangers on the Internet.


Sent from my iPad3 using Tapatalk HD

 

[Michael Wechsler]

I'm not sure why you need to do what you're talking about. An S corp is not subject to double filing and taxation and in addition, you can't just file in another state without consequences. It will cost you money to have someone serve as your registered agent. The issues you are talking about regarding Delaware typically have nothing to do with you and usually deal with corporate taxes on a much higher level. I'd say that the advice given to you here is best - I don't know what someone explained to you but it could be either misinformed, misinterpreted and otherwise just not useful. You need to speak to a local accountant to discuss the exact issues as to why you need to set up new companies and what other entities you're looking to set up that may be affected.

 

[cryptor]

All the lawyers around me have no clue about internet businesses. Nor do the CPA's...

I was just hoping I'd get a little guidance here. Maybe questions to ask or things to look up or read about. I suppose I was wrong...

 

[cryptor]

And I don't think my message was fully read. The structure of the businesses was so my s corp would be the owner of multiple other businesses as a layer of protection and to make it easier during tax seasons as all the other businesses would be flowing into the single s corp, making tax season less complicated.

Maybe I'm just not explaining everything all too well. But it seems apparent that I need to go elsewhere to get some help on this matter.

 

[army judge]

And I don't think my message was fully read. The structure of the businesses was so my s corp would be the owner of multiple other businesses as a layer of protection and to make it easier during tax seasons as all the other businesses would be flowing into the single s corp, making tax season less complicated.

Maybe I'm just not explaining everything all too well. But it seems apparent that I need to go elsewhere to get some help on this matter.

Yes, hire an attorney. Don't trust strangers to give you financial advice.