Status of Assets When Converting an LLC to an S-Corp

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Message Board Status of Assets When Converting an LLC to an S-Corp

This topic contains 1 reply, has 2 voices, and was last updated by William Dewberry 1 week, 2 days ago.

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  • #147983
    Luis Bravo
    Participant

    An LLC changed its structure to Corporation with the secretary of state and elected S-corp status in 2018.

    At the time of the conversion, the LLC had some business assets that now the S-corp has.

    Are these transfer of assets considered a sale by the LLC and purchase by the S-corp, or do the assets transfer as part of the shareholder contribution to the corporation under IRC 351?

    Thanks in advance…

  • #147984
    William Dewberry
    Participant

    351