Relocation of an S-corp to a new state

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Subject Author Date Relocation of an S-corp to a new state Bill B 08-10-2009  Re: Relocation of an S-corp to a new state HLunsford 08-10-2009  Re: Relocation of an S-corp to a new state Stuart A. Bronstein 08-11-2009  Re: Relocation of an S-corp to a new state Tempuser 08-11-2009  Re: Relocation of an S-corp to a new state Stuart A. Bronstein 08-11-2009  Re: Relocation of an S-corp to a new state Bill B 08-11-2009  Re: Relocation of an S-corp to a new state Alan 08-11-2009  Re: Relocation of an S-corp to a new state HLunsford 08-11-2009  Re: Relocation of an S-corp to a new state Drew Edmundson 08-12-2009
Posted by Bill B on August 10, 2009, 6:39 pm Please log in for more thread options I'm working on deciphering some of the aspects of Sec 368(a)(1)(F) in relation to "moving" an S-corp from one state to another via what would technically be a tax-free reorg. I'm not clear on whether the original EIN is retained once the new entity is set up with the new state's SOS. Any advice or recommendations on how this should be structured would be appreciated. The business has quite a bit of history under the existing EIN and would prefer to not have to recreate a tremendous amount of work for business credit, etc. Bill B. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by HLunsford on August 10, 2009, 7:02 pm Please log in for more thread options Bill B wrote: > I'm working on deciphering some of the aspects of Sec 368(a)(1)(F) in > relation to "moving" an S-corp from one state to another via what > would technically be a tax-free reorg. I'm not clear on whether the > original EIN is retained once the new entity is set up with the new > state's SOS. Any advice or recommendations on how this should be > structured would be appreciated. The business has quite a bit of > history under the existing EIN and would prefer to not have to > recreate a tremendous amount of work for business credit, etc. > > Bill B. > I found no problem with that. Just establish new corporation in new home state and continue to march. It's only an instance of changing from one state to another. ChEAR$, Harlan Lunsford, EA n LA -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Stuart A. Bronstein on August 11, 2009, 11:01 am Please log in for more thread options > Bill B wrote: >> I'm working on deciphering some of the aspects of Sec >> 368(a)(1)(F) in relation to "moving" an S-corp from one state >> to another via what would technically be a tax-free reorg. I'm >> not clear on whether the original EIN is retained once the new >> entity is set up with the new state's SOS. > > I found no problem with that. Just establish new corporation > in new home state and continue to march. > > It's only an instance of changing from one state to another. So a new EIN isn't necessary for the new corporation? I'm aware that when there's a merger the joint company can choose which company's bank routing number (on checks) to use. But I'm not aware of how that works for EIN's. -- Stu http://downtoearthlawyer.com -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Tempuser on August 11, 2009, 11:46 am Please log in for more thread options Stuart A. Bronstein wrote: >> Bill B wrote: > >>> I'm working on deciphering some of the aspects of Sec >>> 368(a)(1)(F) in relation to "moving" an S-corp from one state >>> to another via what would technically be a tax-free reorg. I'm >>> not clear on whether the original EIN is retained once the new >>> entity is set up with the new state's SOS. >> I found no problem with that. Just establish new corporation >> in new home state and continue to march. >> >> It's only an instance of changing from one state to another. > > So a new EIN isn't necessary for the new corporation? I'm aware that > when there's a merger the joint company can choose which company's > bank routing number (on checks) to use. But I'm not aware of how > that works for EIN's. > The OP stated he was "moving" an S-corp from State A to State B. If, this was just a change in physical location, then the EIN is okay. If the charter moved, i.e., a new corporation chartered in State B was created, then a new EIN is also required. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Stuart A. Bronstein on August 11, 2009, 12:29 pm Please log in for more thread options > Stuart A. Bronstein wrote: >> So a new EIN isn't necessary for the new corporation? I'm >> aware that when there's a merger the joint company can choose >> which company's bank routing number (on checks) to use. But >> I'm not aware of how that works for EIN's. >> > The OP stated he was "moving" an S-corp from State A to State B. He also said it was going to be a tax-free reorganization. You don't do that unless another corporation formed in the new state is involved. > If, this was just a change in physical location, then the EIN is > okay. If the charter moved, i.e., a new corporation chartered in > State B was created, then a new EIN is also required. That's what I thought. -- Stu http://downtoearthlawyer.com -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Different Spousal Residence Dates for Out of State Job Relocation April 9, 2008, 7:45 pm elderly relocation June 27, 2007, 10:56 pm relocation expenses March 3, 2009, 10:15 pm relocation income from my employer in box 1 ??? March 11, 2007, 12:23 pm Is Uniform Relocation Assistance money taxable? 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