Plan Sponsor Changes from LLC to S Corporation - Effect on Document

[Guest dyoder]

When an employer changes from an LLC to an S corporation, what needs to be done with the plan document? There is only one employee who is the sole owner of both the LLC and S Corp.

[Belgarath]

That's very hard to say without having the document. In a very general way, if you have a document that allows for it, the "new" employer (the S-Corp) can usually adopt the existing plan by assuming the assets and liabilities of the plan. But since in my experience most LLC's are taxed as partnerships, there may be some items in the document or adoption agreement that require changes.