Acquiring minority stake in an S-Corp, should we convert into LLC?

by a searcher from Boston College - Wallace E. Carroll School of Management

4 years ago

In negotiations to acquire a 40% stake in an S-Corp. Have read a lot about how everything is moving to LLCs. What are the reasons for this - tax or limits personal liability or otherwise?

If there are any lawyers out there willing to give some free legal advice, I could potentially use some and promise to it back should negotiations continue:) Would like to provide this advice as a favor to the seller as he gets more comfortable with me/the deal

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professional from Walsh College of Accountancy and Business Administration

Jon converting a S corporation into a LLC taxed as a partnership is not advisable and would create a large tax bill. There is a better tax structure using a LLC taxed as a partnership for a 40% investment that will provide you with tax benefits now and in the future if you end up buying the remaining 60%. Send me an email and we can set up a time to talk about the structure and the tax benefits. --@----.com

4 years ago | like reply | 1 like

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