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February 14, 2024
Question

LLC with S Corp election to PC

  • February 14, 2024
  • 1 reply
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I file my taxes now as an LLC with S corp election. My state charges an annual fee to be an LLC. I was going to convert to a Professional Corporation to avoid the fee. Do I have to change anything with my tax filing (aside from dropping the LLC at the end of the name and putting a PC?).

1 reply

February 14, 2024

see a lawyer. just dropping the LLC when it is one and substituting PC may cause legal problems in the future. your state charges annual fees for LLCs so the llc must be terminated per state law to end those fees.    then you have to form a corporation which may have its own annual fees.