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I have a small S corp in MD with about 4 years of history but want to move to Virginia. . I registered another S corp in Va to merge them together. to maintain the history of the MD corp. What are the steps to merge the MD corp in to Va corp. Does this need IRS permission? what forms are used?.
Thanks
Shan
Thanks
Shan
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Tax Professional Answers
John Stancil
You can maintain the MD corporations as is. You do not have to reside in a state to have a corporation registered there. Since corporations are state-based, your "merger" of the two into the new VA corporation has the effect of eliminating the two MD corporations, as they 1. Lose their existence when the merger occurs and 2. You can't merge a corporation of one state into one from another state.
Havaing the VA corporation to be a the sole owner of the two MD corporations is not an option, as an S corp cannot own the stock of another S corp.
You don't need IRS permission, but you will need new federal ID numbers and new S corp elections.
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482 weeks ago
Havaing the VA corporation to be a the sole owner of the two MD corporations is not an option, as an S corp cannot own the stock of another S corp.
You don't need IRS permission, but you will need new federal ID numbers and new S corp elections.