CBES
CHOOSING THE BEST ENTITY STRUCTURE UNDER THE TAX LAW IN 2012

Tax rates are always an important factor in choosing the form of business organization, and the fluid individual rates in 2013 and beyond demand a reconsideration of current businesses and a different analysis for new ventures. By comparing and contrasting the tax aspects of C corporations, S corporations, partnerships, sole proprietorships, and limited liability companies, this course focuses on distinctions that can make big differences. This in-depth course will cover planning opportunities and potential pitfalls in developing a business structure. This course is a must for all practitioners.

Major Topics:

• Tax considerations in the organization of an enterprise and the pitfalls to avoid
• Non-tax considerations
• How income tax rates affect choice of entity
• Formation of a sole proprietorship, partnership, LLC, single-member LLC, S corporation, and C corporation
• Practical guidelines on what entity structure to use under various circumstances, and relevant, recent changes in the law
• Comparing and contrasting the tax aspects of partnerships with sole proprietorships, S corporations with partnerships, C corporations with S corporations, and partnerships with C corporations, and limited liability companies with all other entities
• Choice of entity in structuring real estate investments or a professional business
• Fringe benefits and retirement plans: which entities have special advantages
• Liquidations, dissolutions, and dispositions of a business
• Reviewing the issues in light of the changing tax rate on dividends and capital gains
• Impact of the manufacturers deduction on choice of entity

Learning Objectices:

• Identify the various business organizations available and their nontax criteria
• Distinguish the tax characteristics of a sole proprietorship, LLC/partnership, S corporation, and C corporation
• Understand the formation and exit strategy tax issues

Designed For: CPAs who are considering starting a new business or who advise clients on the form of business organization that is best in light of recent tax law changes
Level of Knowledge: Intermediate
Prerequisite: A beginner course in partnerships/LLCs and in S corporations
Advanced Preparation: None
CFP: Yes
Yellow Book: No
New: No
Credits: 8
Field of Study: Taxes