Choice of Entity 2022

Overview

This course compares sole proprietorships, partnerships, limited liability companies, C corporations and S corporations. It examines their advantages and disadvantages, giving you the knowledge to properly select the correct business entity for 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 significant differences between business entities and the advantages and disadvantages of basic business entity types. • Recognize the tax attributes of sole proprietorships, partnerships, LLCs, S corporations, and C corporations and how each can 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 permissible basic deductions 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 to terminate the entities. • Specify the basis and tax effect of sales, exchanges, transfers, contributions, and distributions for different entity types.