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MenuThis will depend upon whether your accountant capitalized and depreciated the assets, or were the equipment purchases expensed currently in the year they were acquired? Is your consulting company taxed as a C corporation, S corporation, or something else?
If your equipment was purchased through the consulting company and expensed currently, the equipment was never recorded as an asset, so you could simply transfer the equipment into the company.
If the equipment was being carried on the company's books as an asset, you can either sell the equipment to the new company, or distribute the assets to yourself as the shareholder, and recontribute the equipment to the newly formed startup. Whenever assets are distributed out of a C or S corporation, the distribution is treated as a deemed sale, so there may be some taxable gain if the fair value exceeds the adjusted basis in the equipment.
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