Backdating computer dating a fireman
The original company, an S-corp, was split into two separate LLC entities, one for each of the two locations which sell identical products and services. The two locations and the other new entities were separated in order to protect the owners’ assets from potential lawsuits should there be any.The operating agreement for each of the six LLCs indicates that the ownership is 50/50 husband and wife.In fact, if no operating agreement had ever been made, am I correct in thinking that this problem would not exist?The Articles of Organization do not identify the owners of a new LLC. Is there an issue relative to the IRS’s definition of “bankrupt” which might place the LLC with the big loss into that category, causing a tax to be triggered if the interest in that LLC is now transferred from the husband and wife to the S-corp?It seems outrageous that these small business owners are at the mercy of the consequences of a tax planner who seems to have thrown them under the bus.Any advice anyone can give on all this will be very much appreciated.
This adjustment would save the owners from unfavorable tax consequences, and the new entities that were created would simply be ignored.
Once a return is filed, it would be too late of course.
' data-inline-edit-type='wysiwyg' data-inline-edit-url='/answers/605617' id='inline_edit_answer_605617_body' Fraudulent backdating to provide a tax advantage is illegal.
Was all monies run through S-Corp or were individuals the recipients?
At this point no returns were filed showing intent of LLC's to be owned by individuals.