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The shareholders will then transfer the assets to the newly created LLC.

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Dark cravin sex - C corporation liquidating dividend

As part of every liquidation, state and federal income, payroll and capital gains taxes must be paid at both the corporate and individual levels.

A C corporation is a business entity governed by Subchapter C of the Internal Revenue Code.

These taxes can be significant if the corporation and shareholders own primarily intellectual property, such as a secret recipe, that had no value at the time the company was established but is now worth millions as a trade secret.

The sale of a C corporation is also a taxable event for both the company and shareholders.

There are some crucial differences, however, that should be considered when choosing the best form for your business.