As tax professionals, we’re often asked, “Should I become an S Corporation?” The promise of self-employment tax savings can sound like the ultimate destination but the road to 1120-S is filled with key decisions, compliance challenges, and planning opportunities that require careful navigation.
In this session, we’ll explore the full scope of that transition, from making timely elections, reasonable compensation and maintaining compliance unique to S Corporations. Whether you're advising first-time entrepreneurs or seasoned business owners ready for the next phase, this session will equip you with a practical framework to guide clients toward greater tax efficiency and long-term success.
Learning Objectives: By completing this course, you will be able to advise your clients on navigating the transition to S Corporation status and staying compliant. The instructors will cover critical decisions, compliance challenges, and planning opportunities in the following areas:
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Determine S Corporation eligibility: Identify the key IRS requirements for a business to qualify for S Corporation status, including shareholder limits and stock class rules.
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S Corporation suitability and election procedures: Assess when an S Corp is appropriate for a client and accurately understand the process for filing Form 2553, including late elections.
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Understanding S Corp reasonable compensation and accountable plans: Grasp the IRS's requirements for reasonable officer salaries, and key criteria for compliant accountable plans.
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Common S Corporation pitfalls and how to avoid them: Recognize and address issues like passive income limitations and basis challenges.
Who Should Attend? Anyone who prepares tax returns and advises clients.
CPE: 1
CE: 1
