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Changing LLCs, Tax Classification and the Impact

2 CPE for AFSP, EA, CPA, CRTP       

When a client wants to discuss whether they should change entity types it is key to understand the tax impact of the conversion. It is not as simple as just reporting the change on the appropriate form. During this session we’ll discuss what happens when a limited liability company (LLC) adds owners or when the sale of interests leaves only one partner in that LLC. Additionally, we will address factors to consider when the LLC owner(s) wants to elect in or out of corporate status.  

Upon completion of this session, you will be able to:

  • Summarize the steps required when converting an MMLLC (multi-member LLC) treated as a partnership to an SMLLC (single member LLC) treated as a sole proprietorship 

  • Identify tax impacts of adding a member to a solely-owned LLC(SMLLC to MMLLC) 

  • Determine the tax consequences when an SMLLC treated as a sole proprietorship coverts to an LLC taxed as an S corporation 

  • Outline the mechanics of converting an MMLLC (multi-member LLC) treated as a partnership to S corporation treatment 

CPE information
Duration: 100 minutes
Course level: Intermediate
Prerequisite: Basic understanding of individual and business taxation
Advanced preparation: None
Delivery method: Group Live

AJ Reynolds

President at ABC Bookkeeping & Tax Svcs Inc.

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