Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
This course will discuss business advantages and disadvantages of C-corporations, S-corporations, LLC's, partnerships and sole proprietorships. It will also cover the tax advantages and disadvantages of each entity type. Finally, the course will cover the tax treatment and potential pitfalls involved in forming each type of entity.
Publication Date: July 2021
Designed For
Tax practitioners at all levels who advise on the tax issues involved in forming business entities.
Topics Covered
- Business advantages and disadvantages to various business entity structures
- Tax advantages and disadvantages of various business entity structures
- Tax treatment of formation transactions for C corporations, S corporations, LLCs and partnerships
- Potential current and future pitfalls of forming each entity type
- Tax Cut and Jobs Act Effects on Choice of Entity Considerations
Learning Objectives
- Describe the business advantages and disadvantages of using C corporations, S corporations, LLCs, partnerships and sole proprietorships
- Identify the tax advantages and disadvantages of each entity type
- Describe tax consequences to forming various types of entities
- Differentiate business structures and describe how they are applied
- Recognize stock options in a Corporation
- Identify correct statements with respect to profits interest
- Recognize whether an entity is separate from its owners in regards to the evaluation
- Identify proper examples of an ineligible entity with respect to its tax classification
- Describe default classification
- Recognize what happens when a corporation changes to a partnership
- Describe how changes in entity classification considerations changed due to the passage of TCJA
- Identify which business structures has unlimited personal liability
- Identify which IRS forms are used in various scenarios
- Identify the price at which a stock option holder may purchase a share of stock by using the option
- Recognize a factor in the LLC four factor test prior to 1997
- Recognize types of entities considered ineligible, in accordance with state law
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (4 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Jennifer Kowal
Jennifer Kowal, JD, has been a tax professor and the director of the graduate tax program at Loyola Law School in Los Angeles since 2003. Loyola’s graduate tax program offers an LL.M. in Taxation for attorneys and a Master in Tax Law for non-lawyers. Professor Kowal teaches courses in advanced income taxation, income tax timing issues, corporate taxation, and tax research, among others. Prior to teaching at Loyola, Professor Kowal taught in the International Tax Program at Harvard Law School.
She also practiced law with the firms of Irell & Manella in Los Angeles and Ropes & Gray in Boston, advising clients on the taxation of various business transactions, including cross-border, partnership and corporate structures. Professor Kowal holds a BS in Accounting with distinction from the University of Kansas, and a JD from UCLA School of Law, where she was a member of the Order of the Coif.