Choice of Entity & Tax Issue Entity Formations
Author: Jennifer Kowal
| CPE Credit: |
4 hours for CPAs
4 hours Federal Tax Related for EAs and OTRPs
4 hours Federal Tax Law for CTEC |
This on-demand course will discuss business advantages and disadvantages of C-corporations, S-corporations, LLC's, partnerships and sole proprietorships. It will also cover the tax advantages and disadvantages of each entity type. Finally, the course will cover the tax treatment and potential pitfalls involved in forming each type of entity.
Publication Date: July 2019
Designed For
Tax practitioners at all levels who advise on the tax issues involved in forming business entities.
Topics Covered
- Business advantages and disadvantages to various business entity structures
- Tax advantages and disadvantages of various business entity structures
- Tax treatment of formation transactions for C corporations, S corporations, LLCs and partnerships
- Potential current and future pitfalls of forming each entity type
- Potential impact of Tax Cuts and Jobs Act of 2017
Learning Objectives
- Describe the business advantages and disadvantages of using C corporations, S corporations, LLCs, partnerships and sole proprietorships
- Identify the tax advantages and disadvantages of each entity type
- Describe tax consequences to forming various types of entities
- Differentiate business structures and describe how they are applied
- Recognize stock options in a Corporation
- Identify correct statements with respect to profits interest
- Recognize whether an entity is separate from its owners in regards to the evaluation
- Identify proper examples of an ineligible entity with respect to its tax classification
- Describe default classification
- Recognize what happens when a corporation changes to a partnership
- Describe how changes in entity classification considerations changed due to the passage of TCJA
- Identify the price at which a stock option holder may purchase a share of stock by using the option
- Recognize what is a factor in the LLC four factor test prior to 1997
- Identify which IRS forms are used in various scenarios
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (4 hours)
Program Prerequisites
None
Advance Preparation
None
