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14 Jul 2019
One operational challenge that S-corporations face is thechallenge of converting from a C-corporation into an S-Corporation.We've studied the concept of corporate earnings and profits in somedetail this term. If you think about it, earnings and profits andtheir associated tax consequences do not disappear because acorporation changes from a C-corporate form to an S-Corporate form.Rather those C-corporate earnings are tracked for decades and ifthey are ever distributed they are subjected to double taxation.Given that structure and the relative ease of completing a type Freorganization, should a C-corporation evet elect to become aS-corporation or is there a better way?
One operational challenge that S-corporations face is thechallenge of converting from a C-corporation into an S-Corporation.We've studied the concept of corporate earnings and profits in somedetail this term. If you think about it, earnings and profits andtheir associated tax consequences do not disappear because acorporation changes from a C-corporate form to an S-Corporate form.Rather those C-corporate earnings are tracked for decades and ifthey are ever distributed they are subjected to double taxation.Given that structure and the relative ease of completing a type Freorganization, should a C-corporation evet elect to become aS-corporation or is there a better way?
Jamar FerryLv2
16 Jul 2019
