Forums: Discussions for entrepreneurs and small business.

I am leaning towards the LLC but I am wondering what happens down the road if things really take off and I want to incorporate.  Can you switch from an LLC to a Corporation without loosing your name, trademarks and other things that you have built up over the years?  If anyone knows about this or has had experience in this area, please let me know.

 

Thank you,

Ted Kern

Icy Hollow Rentals

Hi Ted,

Switching corporate structure is really quite simple. If you`re in an LLC right now and want to move up to an S-corp. What you would do is start the s-corp separately. You can still keep the name because one company would be so and so, LLC and one would be so and so Corp. You then "sell" all of the assets from the LLC to the S-corp so the S-corp now owns them. Because you are essentially paying yourself it is a zero-sum equation. Now you`ve just moved up and you can dissolve the LLC. Always consult with a CPA on complicated matters such as this though.

Thank you for your reply