Discussion:Accounting for LLC to C Corp Conversion
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Discussion Forum Index --> Accounting Questions --> Accounting for LLC to C Corp Conversion
| 19 November 2008 | |
| Hello -
I have a client who recently converted from an LLC (filed a 1065) to a C corp (1120) by filing the 8832. My understanding is that by filing this form they are considered a C Corp for tax purposes. Another firm will be conducting a financial audit for this client. How should they record their equity transactions on the books? Should they continue booking it as a LLC? or start treating it like a C-corp? In other words, should they convert all their capital to common stock for the audit as they will be doing for the tax return? Or will they continue to record capital as is and include a note to the financial statements on the audit? | |
| 19 November 2008 | |
| they didn't convert, they just elected to be taxed as a C corp. They are still an LLC. | |
| 20 November 2008 | |
| Thanks Kevin. I will continue to keep the books as an LLC and include a note to the financial statement. I appreciate your help. | |
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