CBEC
Ten Things You Must Know About Choosing The Right Business Entity
Date/Time: Thursday, August 5, 1-3 p.m. Eastern Time
This program introduces and reviews the issues most tax practitioners confront when advising their clients about the initial selection of a business entity, or changing from one business entity to another. Much of the discussion concerns what aspects of particular tax entities are more favorable to small and medium-sized business owners and whether there is a more desirable business entity than the one the owners are currently using. We will discuss the benefits of adopting that entity and whether the benefits outweigh any associated conversion costs.
Major Topics:
- Does the change in marginal tax rates starting in 2011 make one particular tax entity more appealing than another?
- Self-employment tax issues for pass-through entity business owners - will a projected change in the taxation of unearned income passed through from an entity to an owner make the C corporation attractive again?
- Issues relating to entity conversions - going from a C corporation to an S corporation or an S corporation to a C corporation to a multiple-member LLC treated as a partnership for federal tax purposes
- Does the single class of stock requirement applicable to S corporations make the S corporation too inflexible for many business deals?
- Issuance of partnership profits interests for services or contingent shares in corporations and the making of the 83(b) election
- How do you determine reasonable compensation for S corporation shareholders, and will it matter in the long run?
- Entity organizational issues - what can be done from an entity perspective to avoid state nexus when the states are extraordinarily aggressive in asserting income and sales tax jurisdiction?
Learning Objectives:
- Help clients select the most tax efficient form of doing business.
- Evaluate the impact of self-employment taxes on compensation received from pass-through entities.
- Determine the impact of new 2010 legislation relating to S Corporation shareholder compensation on existing S Corporation compensation arrangements.
Designed For:
- Any tax practitioner who wishes to understand the complex legal and tax issues relating to entity selection.
- Any tax practitioner concerned with making sure that his or her clients' entity is the optimum selection.
- Any tax practitioner who wants to know the tax costs associated with converting one tax entity to another.
Presenter: Michael J. Tucker, CPA
Course Level: Intermediate
Field of Study: Taxes
CPE Credits: 2
Prerequisite: Basic understanding of the tax rules related
to pass-through entity taxation.
Advance Preparation: None