USA Negative capital in llc.

[Robert Branner]

Have a llc with negative capital but have basis due to notes payable. Want to convert to C Corp . That means tranferring in more liabilities than assets. Are they taxed on both the negative capital and the excess of debt over assets?

 

[kirby]

Before proceeding, check with an atty to see if your state will allow a C corp application where the capital is negative.