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    1 Reply Latest reply on Aug 5, 2012 1:25 PM by Moderator Berta

    Conversion from LLC to S-Corp:  Wise?

    ZG-EB Newbie

      Current company registered in Pennsylvania, since 2004

      Organized as LLC

      Ownership husband and wife 49/51

      Professional services business (educational consulting/professional developmentfor school districts, non-profits, companies, etc).

      Revenue has been under $100k with a variety of small contracts done by owners

      New multi-year subcontract opportunity will take revenue into $300k-$500k range and will require use of 1099 consultants to do some of the work

      Desire husband and wife to be only shareholders, directors, officers in new s-corp

      Wife can pull 'reasonable' salary from doing direct work, 1099 payments, and then distribution of rest of earnings to owners

      Want to change the name of the LLC to and find it important (for traditional contract partners) to have "Inc" in the title

      Don't think we mind doing extra paperwork and filing if we can get on a schedule, but don't know what that is?

      Is the yearly cost of accountant going to be more?  Is cost of lawyer after conversion necessary?

      Does the conversion seem like a good idea based on above?

      If convert, once happens to existing certifications under the old name?  Existing contracts?


      Thank you.