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Old 09-20-2008, 04:49 PM
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LLC taxed as C corp convert to disregarded entity

I want to convert my single member LLC taxed as a S corp to a disregared entity (taxed as sole proprietorship). HOW IS THIS DONE? Thanks for any advice.



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Old 09-21-2008, 03:26 PM
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I would like to know why are contemplating to convert back to the single person LLC?

Do you know that the entire income would be subject to S/E tax, whereas in the S Corporation, you need to demonstrate a reasonable salary and then take the rest of the profits out as a flow-thru income? You would still save on flow thru profits not being taxed as S/E taxes.

I know the S corporation is fairly complex tax return, but there are some advantages currently, although in a few years they will lose their appeal if the individual tax rates are increased.

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