Choice of Entity

Overview

This course describes and compares sole proprietorships, partnerships, limited liability companies, “C” corporations and “S” corporations. It examines their advantages and disadvantages, permitting the participant to properly select the right business entity for their tax and liability needs.

Highlights

• Advantages and disadvantages of sole proprietorships
• Taxes for self-employed individuals
• Definition of partnership
• Partnership tax return & year taxable
• Contributed property, assets & services
• Sales and exchanges of partnership interests
• Limited liability companies
• C corporations & PSC corporations
• Inventories
• S corporations

Objectives

• Cite the central differences among business entities and the ad-vantages and disadvantages associated with basic business entity types.
• Recognize the tax attributes sole proprietorships, partnerships, LLCs, S corporations and C corporations and how each entity can be used to enhance tax and financial purposes and objectives.
• Specify the unique (e.g., self-employment) and general taxes applicable to particular entities and the tax forms that may be required.
• Identify the basic deductions that are permissible for each entity type and the conditions under which they are allowed.
• Determine the tax years, accounting methods and valuation methods that each entity type may use, and how the entities can be terminated.
• Specify for different entity types the basis and the tax effect of sales, exchanges, transfers, contributions, and distributions.