Objectives of the Presentation
The requirements a corporation must meet to be an S corporation
The requirements a corporation must meet to be a qualified S corporation subsidiary (QSub)
The characteristics of S corporations, including limited liability and how to maintain it by not having the corporate veil pierced
How to transfer assets to an S corporation without incurring a tax liability
The tax effects of transferring services for stock in the S corporation
The tax effects of transferring assets to an S corporation in exchange for its debt
How to make the election to be an S corporation and what to do if the election is late or faulty
The tax year an S corporation must generally use and exceptions to the general rule
The income tax treatment of S corporations
How shareholders in an S corporation can transfer stock in the S corporation to family members to split income
The tax treatment of operating losses of the S corporation
The tax treatment of distributions from an S corporation
How to avoid an inadvertent termination of the S election
The two ways to sell a business operated as an S corporation
The tax treatment of the liquidation of an S corporation
Why Should you Attend
S corporations are a popular entity choice for small businesses. Even some limited liability companies (LLCs) elect to be taxed as S corporations.
Many people think that S corporations are taxed like partnerships. However, that is not true. While the tax treatment of S corporations has some things in common with partnerships and some things in common with C corporations, the tax treatment of S corporations is unique.
This program focuses on the unique tax treatment of S corporations beginning with the eligibility requirements for S corporations. It includes how a taxpayer can use an S corporation to save income taxes and payroll taxes. It explains how distributions and losses can affect a taxpayer´s basis in S corporation stock and debt differently.
The program concludes with the different ways to sell a business operated as an S corporation and the rules on liquidation of an S corporation.