Tax planning strategies for new businesses considering electing S corporation status, and the pros and cons of switching from a C corporation to an S corporation.
Learning Objectives
- Learning Outcomes
- Recognize the advantages and disadvantages of S corporation status.
- Recognize when the S election becomes effective.
- Identify permitted fiscal years, elections, and user fees.
- Identify shareholder consent rules and causes of invalid elections.
- Recognize events causing involuntary termination.
- Recognize when an S corporation is subject to tax at the entity level.
- Recognize how accumulated earnings and profits, accumulated adjustments accounts, other adjustments accounts, and shareholder bases are affected by distributions.
- Recall the applicability of various S corporation filing requirements.
