C Corporation Change of Ownership
See original discussion at http://www.taxalmanac.org/index.php/Discussion:C_Corporation_Change_of_Ownership
Client bought a corporation "Restaurant" for 150K. She obtained the settlement documents and certificate stating that she owns 100% 10K shares of this corporation.
The reason why she could not start her own corporation is because she can not get the liquor license and so she had to buy the corporation with licenses, location, equipment, and everything else.
The question is: Can the client or should the client obtain a new EIN number from the IRS with the same name of the corporation so she can retain the licenses OR is she stuck with having to continue to use the EIN that the corporation has which she never got by the way. I am surprise she did not get any accounting records, financial statements, etc before she bought it.
Another owner is coming into the picture 50/50 so she will have to transfer 5K shares to this person. If she is allowed to get a new EIN for this corporation (the name has to remain the same because of the licenses), I am assuming they can elect S Corp status, correct?
Please let me know what your thoughts are. I even called the IRS and the State and they both referred me to each other. So funny how no one knows anything and they just love to say "let me transfer you to someone who can answer your question" and then you are on-hold for ever, then they want to transfer you to another person and so on..........so frustrating.
( Asked 05/17/11 10:07 PM in TaxAlmanac, Views by community 16 )