Question
Hello everybody! Maybe this question has an obvious answer to many people, but I'd like to make sure I understand the concept right. When the company is converted from LLC to C-Corp, is it still the same entity and everything that occurred under the LLC is still associated with the C-Corp?
Answers: 1 public & 0 private
Are you converting to a corp under state law, or just "checking the box" on the LLC? If converting, its handled under state by state corporate law, but generally the answer is yes. If just checking the box, the entity is the same entity, you are just changing the tax classification. If we are talking about tax items such as losses or audit issues, the answer is generally, no. It was either a partnership and the partners have the income, gain, losses, etc... or it is a disregarded entity and the sole member has the tax items.
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