This course provides an in-depth exploration of S corporations, a popular business entity choice for closely held enterprises due to their unique tax treatment and governance structures. Students will analyze the legal and regulatory framework governing S corporations, with an emphasis on the Internal Revenue Code provisions, eligibility requirements, and the implications of S corporation status for shareholders and operations.
Key topics include:
- Formation, eligibility, and election of S corporation status.
- Taxation of S corporations and shareholders, including pass-through income, loss limitations, and distributions.
- Strategic planning opportunities, such as minimizing self-employment tax, estate planning considerations, and succession planning.
- Compliance and risk management, including common pitfalls leading to termination of S corporation status.
- Comparison with other business entities, including C corporations, LLCs, and partnerships, to evaluate advantages and disadvantages.
