Kiritsis & Associates
Kiritsis & Associates
Despite the allure of combining, the flexibility of an LLC, the formal structure and tax benefits that S Corp elections possess, the very real danger of achieving none of the above is possible, when an LLC chooses S Corp election.
1. More formalities. Amending the LLC operating agreement, and creating a complicated internal affairs governance framework, may lead to more not less, corporate formalities.
2. Trigger tax audit, if transition isn't planned properly. The number of tax forms, and procedures to follow to make this entity structure, leaves a lot of room for error for the unwary, which could make the business more likely to face a tax audit.
3. Change in state law could cause S Corp treatment to be lost. Currently, there is a wave of changes happening in the LLC law at the state level due to a number of trends, such as, attempts to uniform LLC laws through RULLCA by some states, attempts to copy Delaware LLC law by others, and yet defiance by many states to keep their LLC laws as is, while putting their own unique spins to adopt with the times. This creates a very real possibility for an LLC law change to frustrate even the most well drafted operating agreement, which in turn, could cause S Corp election to be lost, due to failing to meet one or more of the ongoing requirements.
4. End up with a higher tax bill. There are certain aspects, where an LLC may be better for tax purposes ran an S Corp election, and the change could cause higher not less taxes.
Law Offices of Kiritsis & Associates
Phone # 212 922 0005
Manhattan Office (Main Office):
633 Third Avenue
New York, NY 10017
Brooklyn Office (By Appointment Only):
1023 74th Street
Brooklyn, NY 11228
New Jersey Office:
7309 Ventnor Avenue
Ventnor, NJ 08406
ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.
We hope you would find this website useful with regards to finding potentially relevant information for your legal issue. The Law Offices of Kiritsis & Associates PLLC is a boutique law Firm Group headquartered in Midtown Manhattan, with offices in Manhattan, Brooklyn (NY) and New Jersey. We strive to provide professional legal services for individuals and various business entities. Our clientele ranges from including aspiring entrepreneurs, startups to established business organizations.
We offer flat fee prices for many of the practice areas provided listed throughout our website. For more information on the topic you may be interested, or simply to find out how our law Firm Group can help, you may click at any of our site's links.
We are available for existing and potentially new clients 7 days a week -- via online, phone and/or in person.
Intellectual Property Disclaimer(s):
The materials available through this website and any other websites owned by John Kiritsis (individually and collectively, the "Website") are the property of John Kiritsis and his entities, and are protected by copyright, trademark and other intellectual property laws. You may not use, reproduce, download, store, post, broadcast, transmit, modify, sell or make available to the public content from the Website without the prior written approval of John Kiritsis. Be aware that any unauthorized use of John Kiritsis trademarks and copyrighted content for commercial purposes in violation of John Kiritsis's intellectual property rights will be vigorously enforced. All other trademarks, service marks and trade names referenced in this site are the property of John Kiritsis.
Website Created & Hosted with Website.com Website Builder