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S-Corp vs SMLLC

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  • #16
    Actually, yes, you can shut down your s-corporation and continue to do business. It is called a "dissolution" and you file articles of dissolution with your SOS (Secretary of State) and a final tax return for the corporation. It sounds as if your accountant does not have a lot of experience with busines taxation.

    There are certain issues you must be aware of to prevent taxation on the shutdown, particularly in regard to assets the corporation owns. If you have no appreciated assets and if you do not sell any of them in the next 10 years, you will likely have NO problems. For more specifics regarding your particular situation, however, this is a conversation to have with your CPA. Again, this is not a DIY process :-)
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #17
      Thank you, very helpful as always!  So would you say that for this new CPA I met with, if he didn't know about dissolution, that it is not a good sign?  The main reason I want to switch is to have someone who DOES know all the ins and outs of laws.  I am so tired of doing all the research myself and having to teach my guy, that is just ridiculous.  You sound amazing, but I really hope to find someone local

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      • #18

        Thank you, very helpful as always!  So would you say that for this new CPA I met with, if he didn’t know about dissolution, that it is not a good sign?  The main reason I want to switch is to have someone who DOES know all the ins and outs of laws.  I am so tired of doing all the research myself and having to teach my guy, that is just ridiculous.  You sound amazing, but I really hope to find someone local ?


        Click to expand...



        I understand about wanting to find someone local. Just remember that if you don't have any luck, most of our clients are non-local, including many doctors. Now to your question. Obviously I don't know your guy, but if he is not familiar with corporate dissolution then, yes, I would take that as a bad sign.

        The "For Doctors Only" area on our new website has a Doctor Dilemmas section with answers to FAQs from doctors. I just wrote one with tips for finding a CPA - will post the link when it is up.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #19
          Johanna- You're taking this too personally. Let me give you an example. We had a leaky door, so we hired someone to come in and replace the door. They pulled it off, lifted up the carpet and found some dreaded black mold. They didn't have the equipment to properly do the job. So we had some bids some in and it turned out we needed the following done:

          1. Mold removal

          2. Molding replacement

          3. Drywall replacement

          4. Painting

          5. Carpet replacement

          6. Door installation


          They described each of the jobs and we decided we wanted a professional to do all of it except the painting, which we would do ourselves due to the fact that it would be easy for us to do, we already have plenty of experience, and we already had all the material.

          But any given professional would be quick to say that none of that is a do it yourself project. I say what is one person's do it yourself project is another person's "time to hire a pro."

          I've had all kinds of people tell me at one time or another that all of the following is not a do it yourself project:

          • Setting up an IRA

          • Deciding whether you want term or whole life insurance

          • Managing an investment portfolio

          • Tax preparation

          • Setting up an LLC

          • Setting up a corporation

          • Preparing a will

          • Setting up a trust

          • Drawing up a financial plan


          The list could go on and on. But I look at that list and I see some things I can easily do myself and some things that I either don't have the expertise for or the desire to do. The point is it is my decision. Just because I wouldn't do my own trust or set up my own corporation doesn't mean someone else wouldn't. Just because I think it is easy to open a Roth IRA and design an asset allocation doesn't mean someone else can do it.

          That's all.

           

           
          Helping those who wear the white coat get a fair shake on Wall Street since 2011

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          • #20
            Jim, you're taking this too personally.
            Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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            • #21






              Click to expand…


               

              I just wrote one with tips for finding a CPA – will post the link when it is up.
              Click to expand...


              Tips for finding a CPA from a CPA. I'll bet that post describes you very well.

              I always get a kick out of the articles about how to hire a financial advisor that always describe the financial advisor that wrote it. If the advisor has a CFP, the article says "make sure you find someone with a CFP." If the advisor does not, the article say "designations don't matter much." If the advisor has 5 years experience, the article says "Make sure your advisor has at least 5 years of experience." If he has 10, the article reads "Make sure your advisor has at least 10 years of experience."

              It isn't that there usually isn't something useful in these articles, they just always lack face validity to me. I guess I'd rather see an article written by a financial advisor "How to choose an estate planner" and an article from a tax strategist "How to find an asset manager" and an article from an asset manager "How to find a tax strategist."

              Just an observation.
              Helping those who wear the white coat get a fair shake on Wall Street since 2011

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              • #22









                Click to expand…


                 

                I just wrote one with tips for finding a CPA – will post the link when it is up.
                Click to expand…


                Tips for finding a CPA from a CPA. I’ll bet that post describes you very well.

                I always get a kick out of the articles about how to hire a financial advisor that always describe the financial advisor that wrote it. If the advisor has a CFP, the article says “make sure you find someone with a CFP.” If the advisor does not, the article say “designations don’t matter much.” If the advisor has 5 years experience, the article says “Make sure your advisor has at least 5 years of experience.” If he has 10, the article reads “Make sure your advisor has at least 10 years of experience.”

                It isn’t that there usually isn’t something useful in these articles, they just always lack face validity to me. I guess I’d rather see an article written by a financial advisor “How to choose an estate planner” and an article from a tax strategist “How to find an asset manager” and an article from an asset manager “How to find a tax strategist.”

                Just an observation.
                Click to expand...


                Lol, probably. You are quite the cynic. Since I do all of those things (taxation, financial planning, investment, and estate planning) and that's what I know, that's what I'm best at discussing. I guess I could try to write an article on picking out building materials for a house, but it wouldn't be very useful. Since you mentioned it, here is the article ;-)

                I've seen quite a bit of crap in my industry, if you will, over the past 35 years. I've even blogged about my own financial mistakes. When I point a finger, I have 3 more pointed right back at me. I truly am trying to protect other people, not drum up business. Maybe that's not the case with some, but I tend to give the benefit of the doubt until observation and investigation tell me otherwise. You're not so bad at self-promotion, btw :-)

                Cynicism results from disappointment. It can cloud your judgment.

                Just an observation.
                Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                • #23
                  You're darn right that cynicism results from disappointment. Whether it clouds judgment or not, probably depends on the extreme to which it is carried.

                  Want to know where the best cynicism incubator can be found? An emergency department, without a doubt. Want to lower your opinion of the average American? Go spend Saturday night in an ER.
                  Helping those who wear the white coat get a fair shake on Wall Street since 2011

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                  • #24
                    I get it - I still rag about the terrible OB who was on call when I had my 2nd baby and that was in 1983. Maybe that's my cynicism. But I still like and trust doctors.
                    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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