I have a general partnership with minimal assets and liabilites that I want to change to LLC. Do I just disolve the partnership and transfer accounts to 2 member LLC? This is my first year filing a tax return for the partnership and tax year 2007 I want to be an LLC. Any help appreciated. Thanks
2007-07-22 08:57:12 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
Send me a couple of grand and I will create you a "sole proprietorship", they are the new craze for 2008 and you will be ahead of the game. Just kidding, but next time somebody attempts to sell you some new way to form your business, take a deep breath and run!
2007-07-23 18:30:32 · answer #1 · answered by ? 6 · 0⤊ 0⤋
Just out of curiosity, why are you doing this? It won't save you a penny in taxes and you'll likely have additional legal costs involved. You'll still have to file a Partnership return and prepare the K-1s.
The only thing that an LLC will do for you is help to limit your personal liability exposure. If you don't have a significant legal liability exposure in the business then an LLC may well be just a waste of money. If you have only a modest liability exposure, buying proper liability insurance may be a better bet.
2007-07-22 09:11:26 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Form the limited Company with you and partner as shareholders. Value partnership, dissolve and trade to share at the level each partner is worth. You need partnership accounts for taxman and then you will need ana accountant for the limited Company to prepare future accounts.
2007-07-22 09:02:31 · answer #3 · answered by Barbarian 5 · 0⤊ 0⤋