The S corporation form is often misunderstood. With a solid foundation in S corporation taxation, you can explain to clients how they can use the tax status to their advantage. You'll become prepared to explain the benefits and drawbacks of electing S corporation status and why business taxpayers may favor pass-through entity treatment over the C corporation. This course will give you the knowledge you need to speak effectively to potential business clients and existing shareholders about the S corporation business model that may work for them.
Learning Objectives
- Recognize when an S corporation may be advantageous for a business.
- Identify the potential disadvantages of operating as an S corporation.
- Identify permitted fiscal years, elections, and user fees.
- Recognize when the Selection becomes effective.
- Identify shareholder consent rules and causes of invalid elections.
- Recognize events causing involuntary termination.
- Recall the path to making a new election after termination.
- Recognize when an S corporation is subject to tax at the entity level.
Major Topics
- Advantages and disadvantages of S corporations
- Electing S corporation status
- Termination of S corporation status
- S corporation tax on built-in gains
- S corporation pass-through to shareholders, basis, and losses
- S corporation distributions
- Taxable year of S corporations
- S corporation passive activity rules, fringe benefits and other considerations
