I'm acquiring a business structured as an LLC taxed as an S corp. We’re planning an F reorganization to transition it into a standard LLC taxed as a partnership. After closing, we intend to sell the business’s equipment immediately but want to avoid the heavy tax burden that typically comes with selling assets. At the same time, we need to maintain the company’s existing safety certifications, EIN, bank accounts, etc.

From what I understand, this structure is considered an equity sale but is taxed as an asset sale, which should allow us to avoid the immediate tax hit when selling the equipment. Can anyone confirm if this is correct?

Also, if you’ve worked with a great lawyer on a similar restructuring, I’d appreciate any recommendations. Thanks!