One of the most important considerations under the new tax law is choice of entity for new or existing businesses. The tax reform made sweeping changes to pass-through and corporate taxation, which will have a significant impact on how that decision is made. While the double-taxation scheme applicable to C corporations generally made small business owners opt for a pass-through structure, the reduced corporate tax rate under the new law may have leveled the playing field. Even though the new law also provides for a deduction for pass-through business owners, corporations may be more attractive than ever before.

This webinar will discuss the changes to pass-through and corporate taxation, as well as issues to consider when making the choice of entity structure, either as a new business or as an existing business owner.
 

Practitioners will learn about:

• The sweeping changes to pass-through and corporate taxation
• How those changes should factor into making the choice of entity decision, whether as a new business or as an existing business considering conversion
• Issues that affect an S corporation's decision to convert to a C corporation, and when that decision can be made in order to be effective as of 1/1/2018
• How distributions made during the first C corporation year can count as S corporation distributions (with certain limitations)
• What steps can be taken by an S corporation that converts to a C corporation to preserve its accumulated adjustments account (AAA) in case it wishes to convert back to an S corporation in the future