Liquadating c corporation
C corporations, like flying, were once a choice of last resort.
Of course, if the corporation should the asset and distributed the cash to the shareholder, the result would be the same.
There is another important consideration: how to relocate your formal business entity.
Sole proprietorships and partnerships simply move and register to do business by filing a DBA in the new location.
Instead of paying a dividend (in the case of a C corporation) or a distribution (for an S corporation) in cash, you may be tempted to distribute property (car, computer, etc.) out of the corporation. If an S corporation distributes appreciated property to its shareholders, the difference between the fair market value and the property's basis will result in a gain that will be passed through to the shareholders. (an S corporation) owns a truck that was purchased for ,000.
As a shareholder/owner you may think it's your property, but it's not. In addition, a distribution can affect your basis in the corporation.
The gain is passed through to the shareholder and has to be reported on his tax return.