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Discussion:LLC Partnership to S.corp

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Discussion Forum Index --> Accounting Questions --> LLC Partnership to S.corp

Lchanno (talk|edits) said:

31 July 2012
Two members LLC classified as a partnership, dissolved due to 50% rule, the surviving member(buyer)elected to be S.corp, filled 2553. the question is: do I need to close the books for the partnership since we filled the final return and start new set of books for s.corp by allocating the purchase price to the business assets? any thoughts about the JE for closing, I know I have to credit owner investment and debit assets, looking for detailed JE !

EmpireCPA (talk|edits) said:

6 August 2012
For book purposes the accounting treatment should be consistent whether the entity is taxed as an S Corp or partnership. According to ASC 272-10-45-3, limited liability company financial statements should be prepared similar to partnership statements, except referencing member's equity and similar titles(paraphrasing).

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