# keep s-corp or change to llc



## Binary01 (Jun 2, 2007)

brief background...

when i started :2:37am: in '99 i registered as a s-corp since i was doing construction and needed liability insurance and all that...

fast forward to now

i received my trademark as :2:37am: being marked in the clothing industry...so i was thinking to change my statis to llc for the clothing line.....or should i keep it as a s-corp?

i have to start another 'company' for my design/shop so thats another issue......


i think i'm going to have to notify the irs about the 'company' changing from construction to clothing now....hmmm....

b


----------



## suju (May 2, 2008)

You don't have to change the company or start another company just because you changed the type of business. On your next tax return, just update the principal business activity. I incorporated back in 1999 as a retail coffee house and now I'm doing the t-shirt business and also sell packaging under the corporation.


----------



## Girlzndollz (Oct 3, 2007)

b, do you have to now re-register with the new state you will be residing in? Be in Jersey or NY? I would think you could go LLC or sole prop as the clothing company. Lots of folks here are SP.

Of course, it's always best to consult an accountant on these issues... and I'd put a call in to one if I was you. Another resource is the Small Biz Dev Center. Contant your new local one, they'll have all this info for you, and what else it takes to do biz in Jersey. Or NY.


----------



## jamaspea (Oct 15, 2007)

If you changed to a single operator LLC you prob will just need to fill out a bunch more paperwork and pay the state more. In NY you have to post the formation of the company and post it in a weekly and daily paper for 6 weeks, and then prove and pay the state that you did.


----------



## studog79 (Jul 13, 2006)

Everyones tax situation is unique. YOu should find a great CPA and they would help you.


----------



## Girlzndollz (Oct 3, 2007)

studog79 said:


> Everyones tax situation is unique. YOu should find a great CPA and they would help you.


 
Agreed.


----------



## jamaspea (Oct 15, 2007)

agreed, What be best for me may not be best for you. I dont know whats involved in a S-corp (or your state laws) I just know in NY you have to publish things in the paper have annual meetings with minutes. It may be more work, but YOU may get more out of it..


----------

