After the corporation distributes the cash to the shareholder, we will have LLC2 file IRS Form 8832 and elect to be treated as a C corporation.(4) The effective date of this election will be the day before the effective date of the contribution of the note from the corporation to LLC2, Inc., so that the contribution can be treated as a I.R.C.
[section]453--As previously described, the contribution of the note will not result in gain being recognized by either LLC2, Inc., or the corporation.
Assets in one LLC are separate from assets in another LLC, even if the LLCs are owned by the same person; if someone sues LLC1 then the assets in LLC2
are protected, as is the owner's other personal assets.
Aquarius (c/o LLC2
Lyke Licensing Consulting LLC), Betty Lyke Urie, President, 612-922-9030, Ilc2@earthlink.net, P.
Lyke Licensing Consulting LLC, Betty Lyke Urie, President, 612-922-9030, email@example.com, P.