A CA LLC was formed on March 2011 as a Professional Engineering company. The President was notified by the Board of Professional Engineers that engineering firms cannot be LLCs per the Secretary of State guidelines for the Articles of Organization.
The company is choosing to convert the LLC to a Corporation, and then file for Subchapter S Election.
1. Should a new EIN be obtained?
2. Will there be a Minimum Franchise Tax of $800 for the LLC and an additional $800 for the S-Corp for the 2011 tax year?
Thanks in advance.
1) EINs are non-transferable so you will need a new one.
2) You will have payments to the Franchise Tax Board for both entities.
The above answer is not "legal advice" as specified under any pertinent rules governing the Professional Responsibilities of Lawyers and should not be relied upon. An attorney-client relationship has not been established by virtue of this correspondence. Legal issues are often complex and involve local laws and facts which may not be effectively communicated without a complete consultation.
I may suggest that you request, via email, the FREE MEMORANDUM on the advantages and disadvantages of legal entities...and also perhaps the memorandum of corporate compliance and properly maintaining your corporation.
Shawn Jackson ESQ. (707) 584-4529
Business Development Attorney EMAIL: Attorneys@CaliforniaBusinessDevelopment.com
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