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Introduction to C-Corporations
IRS Program #: X9QQU-T-01013-23-O
CTEC #: 6257-CE-0160
CE: 2 IRS & 2 CTEC credits
Speaker: Daryl Brown, PhD, EA, CPA
During this course, we will review C Corporation specific tax characteristics vs other entity types, different formation types, and how the stock ownership as a founder can bring future tax benefits. We will also explore specific handling of items with owners during the operating years, such as funds loaned to the entity for operating capital vs additional equity investment, tax consideration of funds withdrawn by owners, and tax treatment on sales or liquidation of owner stock in the future.
- Define what qualifies as a C Corporation and the advantages and disadvantages of this entity type.
- Analyze all types of C Corporations, PHC, PSC and LLC’s that file a check the box and controlled groups.
- Define the types of formations, exchanging stock for cash, stock for services or tax-free reorganization and LLCs taxed as C corporations.
- Discuss redemptions and distributions including earnings and profits.
- Discuss overview of constructive dividends and accumulated earnings tax.
- Discuss shareholder loans to or from the company, documents required and treatment of loans not paying interest, AFR rates and reporting to owners.
- Identify Section 1202 stock and what related future tax benefit to the founders are.