Hi! I have an S-Corp that is owned 50% by me and 50% by a partner. I have another business with that I own jointly with my husband and my partner has another side gig that he is working on. We want align to the Trifecta structure and each have one S-Corp at the top that owns all the interest in our various businesses (our joint one and the others).
How do we go about converting our shared S-Corp into a Partnership that will be owned by each of our own S-Corps?
Definitely not an expert on this. Interesting question though. Another consideration is if a change to the first S-Corp will result in new marketing materials, biz cards, letterhead, bank accounts, etc and other costs because of any changes is it still worth making the change? I am under the impression (might be wrong) that once you make an S-Corp election you cannot undo that. I believe you can close that business and transfer all the assets to the new LLC which would be owned by your new S-Corp. I wonder if it isn’t easier to transfer your ownership stake in the original S-Corp from you personally to the new S-Corp. That would just be an internal paperwork change I believe although not as clean as Mark and Matt’s single S-Corp. I’m interested in what they have to say about this. Good luck.
We covered this on today’s Open Forum Show today! The show will be released/uploaded to iTunes tomorrow on November 11th. Thanks so much for listening and participating!! Mark and Mat