http://www.emergingenterprisecenterblog.com/ Boston Startup Lawyers & Attorneys for Venture Capital & Financing Entrepreneurs en Copyright 2012 Fri, 30 Mar 2012 11:33:16 -0500 Fri, 30 Mar 2012 11:33:16 -0500 http://www.sixapart.com/movabletype/?v=4.32-en http://blogs.law.harvard.edu/tech/rss One good reason for considering conversion from LLC to C-Corp in these troubled times is limiting the exposure of investors to the impact of "phantom income" that can arise out of real estate foreclosure. With an S-corp or LLC, any phantom income that arises out of foreclosure flows directly through to the individual investors thus creating a tax bill without cash to satisfy same. By converting the entity to a C-corp and under the same circumstances, any phantom income is "contained" in the C-corp which, if necessary, can be bankrupted thus limiting exposure to the owners.

]]> http://www.emergingenterprisecenterblog.com/startup-issues/converting-from-an-llc-to-a-c-corp/#18772 http://www.emergingenterprisecenterblog.com/startup-issues/converting-from-an-llc-to-a-c-corp/#18772 Startup Issues Fri, 03 Apr 2009 07:00:00 -0500 Dave Broadwin Under the temporary extension of Sec. 1202 gain exclusion thru 12/31/12, it may be advantageous to convert an LLC to a C corporation providing the corporation qualifies as a QSB. The gain exclusion is the GREATER OF $10 million or 10 x basis. The tax savings for certain corporations could be huge.

]]> http://www.emergingenterprisecenterblog.com/startup-issues/converting-from-an-llc-to-a-c-corp/#26328 http://www.emergingenterprisecenterblog.com/startup-issues/converting-from-an-llc-to-a-c-corp/#26328 Startup Issues Fri, 03 Apr 2009 07:00:00 -0500 Dave Broadwin