Choice of Entity Workshop

General Description:

The workshop will review the factors that should be considered in advising a client as to the preferred way to operate a trade or business, hold property for investment, and achieve the client's estate planning objectives.

Learning Objective:

After completing this course the participant will be able to advise a small business start-up client as to the preferred way to operate a trade or business. Specifically, to:

• Explain the pros and cons of various business forms, including C corporations, personal service corporations, S corporations, partnerships, limited liability companies, limited liability partnerships, and sole proprietorships.
• Apply the check-the-box regulations to unincorporated businesses and one-member LLCs, and demonstrate the advantage of a multi-member LLC checking the box.
• Identify the seven basic tax factors which should be considered in comparing the advantages and disadvantages of each business form.
• Compare the advantages and disadvantages of operating a business as an S corporation and a C corporation, including a brief discussion and review of the Code sections that affect the corporation from its initial formation to liquidation and/or participation in a tax-free reorganization to the death of the shareholder.
• Compare the advantages and disadvantages of operating a business as an S corporation and partnership, with a review and discussion of the Code sections that affect a partnership from its initial formation to its dissolution and/or retirement or death of a partner.
• Discuss the impact of the deduction for qualified business income under §199A on the business ­structure, especially in advising a client on making an S election.
• Illustrate how the 0.9% and 3.8% Medicare tax affects the business structure.
• Summarize the tax effects of an existing business changing its business form.

Instructors:

Mark A. Vogel is a retired professor and director of the University of Denver Graduate Tax Program, where for 38 years he taught courses in individual, fiduciary, tax accounting, partnership, and corporate taxation. He is the author of Divorce Taxation Guide (John Wiley & Sons) and Individual Taxation (Shepards/McGraw-Hill). He received a J.D. and LL.M. in Taxation from the University of Denver College of Law and an undergraduate accounting degree from the University of Notre Dame. He is also a CPA licensed in Illinois.

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