USA S Corp Becoming C Corp

[MLH]

I have a client that is transferring from a S corp to a C corp. The reason for doing so is to allow preferred stock to be issued & attract more investors. How would I record the dissolution of the S corp stock? Are there specific rules relating to this or would it be just like filing a final S corp return?

 

[infotaxsquare]

Hi,

1. You will request IRS and the state (if applicable) to terminate your S-Corporation status.
2. Final return of S-Corporation to be filed
3. Since, it was an S-corporation, taxes have already been paid.
4. You only have to adjust basis of s-corporation

Regards,

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