title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Sunday, May 27, 2007
 
Convert S Corp to Non-Profit?


Q:



Subject: Changing from an S-Corp

 

Hello,

 I just read you blog this morning and had a very interesting question for you. Have you heard of and is it possible to change from an S-Corp to a Non profit of 501(c) organization.  I am really curious about this type of change


Thank you for your time


A:



The short answer is NO. 

The types of entities involved are not compatible for such a switch.

A C or S corp is a legal being chartered by a state as a for profit entity.

To qualify as a non-profit organization, you need to have your state charter a non-profit corporation, which is completely different from a for-profit corp and involves different paperwork.

You should be working with a professional tax advisor to straighten things out for your particular goals.

Good luck.

Kerry Kerstetter



Follow-Up:



Thank you so much for your information.


 



 


 

Labels:



Powered by Blogger