DCF s employee stock ownership plan (ESOP) corporate finance experience was leveraged to assist in analyzing several factors affecting the Company s future cash needs including obligations related to the Company s S-Corp
ESOP structure and synthetic equity positions.
2343, the active shareholders of an S-Corp
would be required to pay payroll taxes on all their income from the business--wage and business earnings alike--if the shareholder is a partner in a professional service business or if 75 percent or more of the gross income of the S-Corp
is attributable to the service of three or fewer shareholders.
When you or your company--be it a C-Corp, S-Corp
, LLC or partnership--sells or transfers ownership through a sale, gift or option, be sure the buyer (or recipient) represents that the stock is being acquired or given for investment purposes only.
Entrepreneurs beginning a small business with little expectation for massive growth should create a S-elected LLC or a S-Corp
for tax purposes.
Is the sole shareholder of an S-Corporation subject to federal self-employment tax if the person characterizes the income as an S-Corp
distribution (that generally is not subject to employment taxation)?
Content include information on: new S-Corp
eligibility rules; new deduction for US production activities; new rules for deducting start-up costs; new basis adjustment rules; the various types of entities available; planning strategies in entity selection; pros and cons of each entity; ownership issues; requirements of formation, taxation and conversion; exit strategies and opportunities; and, case law.
Grog Jolivette (R-Hamilton) was expanded in the Senate and approved in the House to include, among others, changes in the taxation of S-Corp
Although it is fairly easy to move from an S-Corp
to a C-Corp, doing the reverse is more difficult.
For an S-corp
shareholder with insufficient basis to deduct corporate losses, a distribution from a qualified plan (or an IRA) could be loaned to the corporation and free up at-risk losses with the only tax cost being the 10-percent penalty.
Consultation Service and Advisor Seminars on Strategic Giving of C- and S-Corp
Stock, Limited Partnership Interests and Other Privately Held Assets
Health Insurance Deductibility: Health insurance expenses for S-corp
owners and Schedule C filers should be fully deductible as a business expense with no limits.
Pro forma adjustments give effect to the termination of the Company's S-Corp
status that occurred June 26, 1995.