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Planning with S Corps - Part 2


Despite the prevalence of LLCs, S Corps remain a preferred choice of entity for many family-controlled and other closely-held businesses. They retain certain tax advantages over other pass-through entities and their corporate structure makes them familiar to investors, their legal counselors, and lenders.

Still, S Corps are "fragile" entities in the sense that the tradeoff for their tax and other benefits is that they must adhere to a several capital structure restrictions, which limit their flexibility. Drafting S Corp stockholders' agreements is a careful balance of maximizing tax benefits, preventing the loss of the preferred tax status through inadvertently disqualifying corporate actions, and maximizing organizational flexibility in other areas.

This program provides a real world guide to business planning with S Corps and drafting their underlying stockholder agreements.

Part 2 topics include:

  • Understanding tax benefits (and traps) of S Corps
  • Distribution planning in S Corps – tax advantages/disadvantages of withdrawing money as salary or distributions
  • Incentive compensation issues, including fringe benefits and restrictions on deductibility
  • Planning for the merger or sale of an S Corp into another S Corp, LLC or C Corp

DETAILS
Phone/Audio
Friday, December 18, 2020
1:00–2:00 PM

SPEAKERS

  • Frank Ciatto, Venable LLP, Washington, D.C.
  • James DePaoli, Venable LLP, Washington, D.C.

PRODUCED
December 18, 2020

APPROVED CREDIT
North Carolina: 1.00 MCLE Hour

PROGRAM PRICING
See pricing below.