Gain a better understanding of the various considerations that go into making a choice of entity decision.
There are a number of entity forms that are available when a business or investment enterprise is started. Many lawyers, accountants and business people fall back on a form that they have used in the past or is recommended to them by someone who is not familiar with of the variables associated with the different forms of business. Unfortunately, it is often the case that the recognition that a poor choice has been made only occurs after the error can’t be corrected or can only be corrected at a significant cost in time, money and effort. This presentation will help the anyone who is responsible for establishing a business or investing in it to understand the factors that they should be considered in making entity choices, including the benefits and detriments of the different forms of doing business or holding investments. Failure to consider these issues may result in significant additional costs, including taxes, exposure to lawsuits and administrative costs.
Learning Objectives
- You will be able to identify and discuss the typical forms of entities that are available when a business is organized.
- You will be able to explain the advantages and disadvantages from a tax, legal, and compliance perspective of each of the typically utilized forms of business entity.
- You will be able to describe to a client or a business associate what factors should be considered in adopting a particular form of business.
- You will be able to recognize the basic tax characteristics of business entities.
Agenda
Overview of Corporate Governance Issues
- Fiduciary Duties of Care and Loyalty
- Judicial Scrutiny
- Ability to Modify
Choice of Entity
- Entity Options
- Choice Factors
- C Corporation Issues
Organizing a Corporation and Basics of C Corporation Taxation
- Section 351
- Shares for Services and Intangible Assets
- Buying and Selling Corporate Stock, Including Section 1244 and 1202
S Corporation Basics
- Eligibility and Election
- S Corporation Subsidiaries
- Special Issues - Big Tax, Section 338(H)(1), Reorganizations
Organizing a LLC and Basics of LLC Taxation
- Check the Box Election
- Flexibility in Allocations
- Profits Interests
Compensation and Section 83
- General Rule
- Substantial Risk of Forfeiture and Non-Transferable
Section 83(B) Election
Corporate Formalities
- Why Comply With Them?
- What Are They?
Questions and Answers Period
Speakers
Leo N. Hitt,
Reed Smith LLP- Partner in the Pittsburgh office of Reed Smith LLP
- Member of its tax practice and former head of the Tax, Benefits and Wealth Planning Group
- Practice emphasizes all aspects of federal income taxation, with particular emphasis in the taxation of business entities, such as partnerships and corporations, securitized and other investment vehicles, including RICs, REITs and REMICs
- Conducts seminars and workshops on numerous topics for a large number of professional groups, including lawyers, accountants and business people
- Wrote several publications related to the areas of the federal income taxation of business entities and other related topics
- Adjunct professor at the University of Pittsburgh School of Law
- Listed in Best Lawyers in America for tax law for more than 10 years and achieved the highest rating by Martindale-Hubbell Law Directory
- Board of the Pittsburgh Tax Club and member of the Allegheny Tax Society
- J.D. degree, University of Pittsburgh School of Law; LL.M. degree, New York University School of Law; B.A. degree, University of Pittsburgh
Who Should Attend
This live webinar is designed for accountants, controllers, presidents, vice presidents, CFOs, tax managers, financial analysts, enrolled agents, cash managers, bookkeepers, attorneys, and treasurers.
