What to do about my business if I am 60 and recently became disabled from a chronic illness?

My professional C-corp was changed to an S-corp 8 years ago. My C-corp shows retained earnings of $120K. There is no money in the corporation and I am sole shareholder. Can I and should I keep it open until I die and will this go away or will my estate be taxed? Is there a better way to deal with this?

Asked on November 14, 2013 under Business Law, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

I am not sure if your S Corp now has those retained earnings because you changed the model of the business to an S corp. As you know, S corp means pass through taxation so you may wish to talk to your estate planning attorney to see if this is now technically your earnings and if so, if you should now place in trust.


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