Choice of Entity ​

CPE Credit: 4 hours

This 4-hour webcast is designed to explain what is a tax entity, helping clients choose the type of entity that is best for them, description of various types of entities, and advantages and disadvantages of various types of entities.

Topics Covered

• Overview:  how to help clients pick the correct business entity
• Definition of "business entity"
•  Issues in choosing a business entity
•  Alternative business organization types
• Organizational issues
• Formational issues
• Advantages and disadvantages
• Compensation considerations
• Consideration of the future based on anticipate growth of the entity
• Importance of documenting legal agreements with significant owners
• Passive activity rules
• Buy-sell agreements
• Various business tax returns
• Buy-sell arrangements
• Reasonable/unreasonable compensation
• Reasonable/unreasonable retained earnings
• Below market interest rate loans and IRC §7872
• Accounting considerations
• Various other information

Learning Objectives:

• Enlighten the practitioner as to the many choices of business entities
• Advise the advisor on how to advise clients in making the best choice
• Help the practitioner with having good impartial views disseminated to clients as to why one type of business entity may be preferable to various others.

Course Number: 
LW0521202

NASBA Field of Study: 
Taxes

Level: 
Basic

Presenter:
Sheldon Clark

Prerequisites: 

• Basic knowledge of business entities.
• Basic knowledge of gentle client persuasion.

Advanced Preparation: 
None