Choosing the RIght Business Entity 2017 - 4 CPE
This mini-course describes and compares sole proprietorships, partnerships, limited li-ability companies, “C” corporations and “S” corporations. It examines their ad-vantages and disadvantages, permitting the participant to properly select the right business entity for their tax and liability needs.
Learning Assignment & Objectives
As a result of studying the assigned materials, you should be able to meet the objectives listed below.
At the start of the materials, participants should identify the following topics for study:
* Advantages and disadvantages of sole proprietorships * Taxes for self-employed individuals
* Definition of partnership
* Partnership tax return & year taxable
* Contributed property, assets & services
* Sales & exchanges of partnership interests
* Limited liability companies
* C corporations & PSC corporations
* S corporations
After reading the materials, participants will be able to:
1. Cite the central differences among business entities and the advantages and disadvantages associated with basic business entity types.
2. Recognize the tax attributes sole proprietorships, partnerships, LLCs, S corporations and C corporations and how each entity can be used to en-hance tax and financial purposes and objectives.
3. Specify the unique (e.g., self employment) and general taxes applicable to particular entities and the tax forms that may be required.
4. Identify the basic deductions that are permissible for each entity type and the conditions under which they are allowed.
5. Determine the tax years, accounting methods and valuation methods that each entity type may use, and how the entities can be terminated.
6. Specify for different entity types the basis and the tax effect of sales, exchanges, transfers, contributions and distributions.