Can S-CORP continue business post discharge

[frogger]

Frogger, thank you for your input. We agree and want a true "fresh start". It's just our atty says to not dissolve. She's been good and very helpful to us. She's been our rock through this whole process. So, we feel we should listen to her advice. Do you, by chance, know if it'll make a huge diff if we don't dissolve? We have a couple of cc with a high balance in our corp, which we know can't be removed from a ch7. Would that make a diff on whether we should/should not dissolve? TIA!

You're welcome.

Not to be too blunt here, but you keep getting the same advice here over and over and over, and that is to start fresh.

It appears that you are looking for someone to say "it's ok to keep the corp alive", and that's just not happening. Whether you listen to the advice here or listen to your attorney, it's all up to you, however if you do want that true "fresh start", you know what to do.

IMO, this has been rehashed enough.

Good luck.

[NewStart2012]

Frogger, thank you for your input. We agree and want a true "fresh start". It's just our atty says to not dissolve. She's been good and very helpful to us. She's been our rock through this whole process. So, we feel we should listen to her advice. Do you, by chance, know if it'll make a huge diff if we don't dissolve? We have a couple of cc with a high balance in our corp, which we know can't be removed from a ch7. Would that make a diff on whether we should/should not dissolve? TIA!

[NewStart2012]

Jst4f, did you have debts with your LLC when you dissolved?

[frogger]

Hmmm...ok, thank you for your insight. Probably best to really "start fresh" Thanks again HHM!

There is no doubt that you would be best served by getting a real "fresh start".

Don't tie yourself to anything in the past that could create problems.

[jst4f]

Jst4f, thank you for sharing your experience. Did you dissolve the LLC or just close them? Is there a big difference between LLC and S Corps when it comes to bk related issues?

We dissolved them as we believe it is cleaner and more up front should it ever be challenged.

[NewStart2012]

The $800 tax they charge for doing business in CA.

[HHM]

Do you mean state or federal tax. If state tax, the issue is too specific to state law, so I don't know. However, having some familiarity with CA Franchise Tax Board, I would wager you will need to pay. Sort of depends on what kind of tax you are talking about.

[NewStart2012]

Hi again HHM. By chance, would you know whether we will still be responsible for paying the business tax if we don't dissolve an s-corp and only do a final tax return?

[NewStart2012]

Hmmm...ok, thank you for your insight. Probably best to really "start fresh" Thanks again HHM!

[HHM]

Probably, but it is not zero risk.

But if the bulk of your business debt are from large, national, or international banks, not usually a problem. Where you run into problems using a same or similar name for new entity is with state and federal taxes, and local creditors (e.g. land lord, vendors etc)...they tend to be a bit more aggressive about collecting and will argue "alter ego" and try to go after the new company for the old companies debt. Now, if the old company had ZERO assets, no big deal, but it can be a headache.

[NewStart2012]

Thank you for that clarification HHM! Really appreciate it Ok, last question on this topic - can we open a new S-Corp or LLC under one of the DBA names that was under our S-Corp before? That name was not associated with the corp cc debt that we're including in our filing. No other cc's or debts were in that business name.

[HHM]

Is there a big difference between LLC and S Corps when it comes to bk related issues?

No difference, a separate corporate entity is a separate corporate entity, regardless of what form it takes (e.g. LLC, LLP, Corp...note, S vs C corp is merely a "tax designation," under your state law in which you incorporate, you are simply a for profit corporation, the S and C designation is only for IRS purposes, but a S and C corp, are not, in essence different types of entities).

[NewStart2012]

Jst4f, thank you for sharing your experience. Did you dissolve the LLC or just close them? Is there a big difference between LLC and S Corps when it comes to bk related issues?

[NewStart2012]

Ahhh...good to keep in mind re: threatening them to reopen your case Good tip! Thanks for all the info.

[jst4f]

We had LLCs pre-BK with CC with some of them. We got calls from the CC reminding us that the CC debt is still owed by the LLC. We reminded them that the LLCs had no assets. They never called back. In the mean time we have closed out the LLCs.