CNBS Moves From Stock Corporation to LLC

OVERLAND PARK, Kan. – Popular credit union broker/dealer CNBS has converted from a stock corporation to a limited liability company. The company is now officially known as CNBS, LLC. Limited liability companies are growing in popularity these days. They essentially are a combination of a partnership and corporation, in the sense that they receive the same personal liability that a corporation would, yet the tax advantages of a partnership. Owners of an LLC are not liable for debts and other things, and profits are only taxed once. CNBS, LLC President/CEO Brian Hague said three strong years of growth have placed CNBS in the highest corporate tax bracket. He said 2003′s income tax costs equaled approximately $12 per share of its common stock outstanding. “We’d prefer to return that money to our investors. The conversion will allow us to take advantage of the tax structure of our ownership,” said Hague. “Based on our budgeted results for this year our tax savings for the last three quarters of this year are about $285,000.” The company has gone through a number of changes over the last 18 months including opening up ownership to natural person credit unions and deciding to serve institutions other than just credit unions. CNBS, LLC is owned by eight corporates and five natural person credit unions.