The S corporation is the most widely chosen form of corporate taxation, and there are over 5 million by some estimates. In fact, there are more than twice as many corporations electing to be taxed as S corporations than C corporations. Advantages including asset protection, pass-through taxation and the ability to manage salary and dividend payments are among the desirable S corporation features.

But S corporations are not as “simple” as they may seem. Many rules must be observed. There are limits on who can be a shareholder, how many shareholders are allowed and the type of shares available. Strict profit and loss allocations apply. There are numerous “traps for the unwary” that may result in unexpected taxation, loss of S status, and difficult election decisions.

In this 2-part course, learners will review all of the critical planning issues and tax traps, from starting the S Corporation and owning it properly to operating it and ultimately passing it on to heirs or purchasers. Here’s an overview of what will be covered:

Part I: S Corporation Organization and Eligibility Issues

• Advantages and Disadvantages
• Forming the S Corporation
• Making the S Corporation Election
• Limitations on Number of Shareholders
• Single Class of Stock
• Eligibility to be an S Corporation Shareholder
• Estates and Trusts as S Corporation Shareholders
o Grantor and Voting Trusts
o Qualified Subchapter S Trusts (QSSTs)
o Electing Small Business Trusts (ESBTs)
o QSSTs and ESBTs Compared
• Loss of S Election
• Loss of S Corporate Status
• Should an LLC Choose to be taxed as an S Corporation?

Part II: S Corporation Operational, Sale and Transfer Issues

• S Corporation Income
• S Corporation Shareholder’s Basis
• Self-Employment Tax and Reasonable Compensation
• S Corporation Income Distributions
• Fringe Benefits and the 2% S Corporation Shareholders
• Who Pays the Tax on Undistributed S Corporation Income?
• S Corporations and the Passive Income and Loss Rules
• Charitable Contributions by S Corporations
• Charitable Contributions of S Corporation Stock
• S Corporations and the 199A QBI Deduction
• The Built-in Gains Tax
• Excessive Passive Income Rules
• Qualified S Corporation Subsidiaries
• Estate Planning for Owners: Valuation Freezes
• Sale of the Business and Buy-Sell Agreements
• Death of the S Corporation Shareholder
o Closing the Books
o IRD Items
o Distributions to Beneficiaries

The course requirements comprised of two comprehensive video lectures which will be followed by a multiple choice exam.