Transfer of Accounts Receivable from a PC to an LLC

USA Discussion in 'Businesses / Corporations' started by charlie Janes, Oct 10, 2017.

  1. charlie Janes

    charlie Janes

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    I'm in the process of dissolving my current private corporation ( PC) and have opened up an LLC. The purpose of this is to dissolve a partnership (the PC) and start my own solely owned LLC. I want to transfer MY accounts receivable from my current PC to my new LLC. What are the tax implications and is there a way to do this to minimize taxation on my accounts receivable? Thanks

    Charlie Janes
     
    charlie Janes, Oct 10, 2017
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  2. charlie Janes

    Drmdcpa VIP Member

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    PC in the US as I understand it stands for Professional Corporation not private corporation. It is not a partnership. I am assuming you used that term very loosely to indicate the PC has more than one owner. If that is the case, the receivables are not yours. They belong to the PC. To make them yours they need to be distributed to you. The tax consequences of this depends on whether the PC is taxed as a C or S corp.

    IMHO you should have a relationship with a CPA instead of asking such a complex question on the internet.
     
    Drmdcpa, Oct 10, 2017
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    aziankool likes this.
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