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going from s corp to llc 12/1/08

Discussion in 'Business Operations' started by ant, Nov 16, 2008.

  1. ant

    ant LawnSite Silver Member
    Posts: 2,442

    i am in the process of going llc from a s corp with the help on my accountant. each time i converse with him he sends me a bill. (i cant blame him..i should know some of those answers)

    i changed my business name and i have to open a new bank account.
    he is telling me that as of 12.1.08 i have to start depositing money in the new bank account.
    1.how is the bank going to let me deposit checks made out to my old company name into the new account?( i am still getting paid from jobs that i billed out in September)
    2. is it a good idea to run the s corp bank account down as low as possible to prevent the double taxation like a llc?(llc from 12.1.08-12.31.08 )
  2. RickR1818

    RickR1818 LawnSite Senior Member
    Posts: 342

    I am confused as to why you are moving from an S-Corp to an LLC. I have been a been advised there isn't much difference.

    DLAWNS LawnSite Fanatic
    Posts: 5,778

    I'm also curious as to why you are changing. Just curious.
  4. ant

    ant LawnSite Silver Member
    Posts: 2,442

    savings.. i work alone
    1. can drop my Workman's comp policy. savings 1200-1300 yr.
    2. my savings on the corp. reg.tax.. in NJ it $550 and going up to $750 in 09.
    3. saving on prep. of tax return.
    just to name a few.
  5. Big C

    Big C LawnSite Bronze Member
    Posts: 1,641

    I would maybe wait until Jan 1st because you will have to pay fees to the state when forming an LLc and they are paid yearly, so you may end up paying the fees on dec 1st 2008 when your new company is launched and then again Jan 1st 2009 for the new year, you will also have file another 2008 tax return for the 1 month old business.....JMO
  6. ant

    ant LawnSite Silver Member
    Posts: 2,442

    if I wait until jan. 1 I will pay nj minimum tax of $500 for 2007 and 2008.
  7. Big C

    Big C LawnSite Bronze Member
    Posts: 1,641

  8. bdm408

    bdm408 LawnSite Member
    Posts: 19

    guess you're better off asking your lawyer again, apparently we don't have any useful info for you. Good luck!
  9. SuperDuty335

    SuperDuty335 LawnSite Member
    Posts: 140

    The annual report fee would be waived until the following year. Which is $200 in NC.

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,137

    dont let ANT fool ya he is the trumpster of lawn care.

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