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S Corp Name - To Change Or Not To Change

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sheba73

Junior Member
What is the name of your state? New York

I own a shoe design S corp, I now would like to start a real estate investment co. with a new partner. I have not been conducting shoe business for over a year now, but I may start again later this year. Is it possible t change the name of the business to reflect my new partnership without having to dissolve, saving new incorporation fees? Or is it possible to change the type of business listed to reflect both? What is the best course of action & what would I need to do?

P.S. My shoe business was incorpoated 1/04.
 


seniorjudge

Senior Member
Contact the secretary of state (or whoever takes care of corporations up there) and ask your questions.

Also, it could be possible for you to file a fictitious name affidavit: e.g., ABC Shoe Business, Inc. doing business as XYZ Real Estate Investments.
 

clueless3

Member
If I were you, I would start everything fresh, from scratch, with a new partner, for a number of reasons:

1) If you use the existing S Corp, it may or may not be the best entity for your new business venture, depending on what kind of investment you want to do! Who knows, after talking over with your new partner, you might decide that an LLC does a better job!

2) Filing to dissolve the old S Corp is not much more work than to file to add new officers to the S Corp. You won't save much effort by trying to salvage the old entity. Yes, you will save some money on creating the new entity, but it's gonna be peanuts compared to the RE investment deals that you'll do.

3) If your partner is wise, he wouldn't want to be part of your old S Corp, inheriting all of its past liabilities (tax or otherwise). Who knows, one of your old shoe customers might come back next year to sue your S Corp! Or the IRS might want to audit you and make you pay for the old S Corp past taxes and penalties!
 

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