Name
Business Taxation 101 – Part 2; P.M. Pre-Cursor Intensive
Date & Time
Monday, July 30, 2018, 1:30 PM - 5:00 PM
Description
Business Taxation 101: Part 2
Monday, July 30, 2018
1:30pm – 5:00pm (Total of 30 minute break)
(For Part 1, please also choose 8:30am – 12:00pm session)
This is a 2-part foundational course on the federal tax treatment of businesses. Using a case study approach, we’ll go through the lifecycle of a business, discussing the implications of critical tax decisions made during formation, operations, and exit. No prerequisites!
During this Part 2 afternoon session, we will continue to explore and learn key takeaway tips and tools to build helpful strategies to serve these type clients:
“Onward and Upward! Taxing the Business at All Stages of Its Life Cycle”
- Summary and review of the formation of Susan’s goals and the formation of Susan’s Cupcakes
- We’ll continue with Susan’s Cupcakes and explore the tax and legal treatment of various operational decisions that our client Susan may make as she operates and grows her business.
- Additionally, we’ll explore the practical impact of our initial formation decisions on Susan’s exit options.
- (Note: we’ll take one or more brief (5-15 minute) breaks as needed during this part when there are natural stopping points in the discussion.)
- During the final segment, attendees will develop a plan for a scenario, applying the principles of federal taxation, business formation, operations, and exit discussed throughout the course.
- We’ll close the day with a discussion of the planning strategies that the groups developed and a few planning strategies that work for the scenario.
Outline of full 2-part course:
1. Why learn the basics of business taxation?
1.1. Command higher fees
1.2. Keep clients in house
1.3. Expand your toolbox
2. Concepts of basis, realization, and recognition in the federal tax system
2.1. How basis, realization, recognition, and “boot” operate when transferring property into (and out of) business entities
2.2. The impact of various transactions on an owner’s basis in an entity
3. Demystifying the “split personality” of business entities
3.1. Common types of domestic business entities (sole proprietorships, LLCs, partnerships, and corporations)
3.2. Common types of federal tax statuses for domestic businesses (disregarded entity, partnership, S Corp, and C Corp)
3.3. How the common types of federal tax statuses work with state-law governed domestic business entities, like LLCs, corporations, and partnerships
4. A comparison of each federal tax status and its impact on the owner’s net cash from operations
5. Common strategies for adding new owners to a business and the impact of federal tax status decisions
6. Tax implications of staffing the business with employees versus independent contractors
7. The impact of federal tax status on exit strategies for business owners
8. Common documents and records that must be maintained by the business
9. Partnering with CPAs and other professional advisors in representing business clients
We will not be discussing discounting, gift strategies, or other estate planning-oriented uses of business entities during this course. The focus of this course is on the federal income tax treatment of operating businesses, such as mom-and-pop shops, restaurants, real estate businesses, etc.