Core Principles in Entity Selection

OVERVIEW

Explore an advanced exploration of entity selection in taxation with our specialized course, Core Principles in Entity Selection. This in-depth course guides participants through strategic decision-making processes essential for selecting the optimal entity structure, including sole proprietorships, partnerships, corporations, and limited liability companies (LLCs).

Gain a comprehensive understanding of the advantages and disadvantages associated with each entity type, from tax efficiency and liability protection to potential drawbacks such as administrative complexity and compliance requirements. Explore the profound impact of recent tax reforms under the Tax Cuts and Jobs Act (TCJA), analyzing changes in corporate tax rates, pass-through deductions, and depreciation rules that influence entity selection strategies.

Learn to identify key indicators signaling when a business should pivot its entity structure to enhance tax benefits or operational efficiency. Additionally, master effective strategies for structuring compensation concepts, including equity incentives and deferred compensation plans, while navigating associated tax implications. Through practical examples and real-world scenarios, this course equips participants with the expertise needed to navigate the complex landscape of entity selection with confidence and precision.

Learning Objectives
Upon completion of this course, you will be able to:

• Develop a deep knowledge of various entity types such as sole proprietorships, partnerships, corporations (C-corporations and S-corporations), and limited liability companies (LLCs), including their legal structures, governance requirements, and tax implications.
• Analyze the advantages, such as tax efficiency, liability protection, and operational flexibility, versus the disadvantages, such as administrative complexity and compliance requirements, associated with each entity type.
• Explore the impact of current tax laws and regulations, including recent reforms like the Tax Cuts and Jobs Act (TCJA), on entity selection strategies. Understand changes in corporate tax rates, pass-through deductions, depreciation rules, and other relevant provisions affecting business entities.
• Learn to assess and recommend the most suitable entity structure based on specific client or business needs, goals, and operational considerations. This includes considerations for scalability, succession planning, and international operations.
• Understand advanced concepts related to structuring executive compensation, equity ownership, profit distribution, and retirement plans within different entity types. This includes navigating complex tax implications associated with compensation packages.
• Gain insights into the legal and regulatory requirements applicable to each entity type, including compliance with state and federal laws, corporate governance standards, and reporting obligations.

At the end of the course, participants will be required to pass a comprehensive final exam covering all topics addressed throughout the course. The exam is open book, and the downloadable PDF containing the course material is available on the first page of the course. A minimum score of 70% is necessary to satisfy the Continuing Education (CE) requirement and to obtain a Certificate of Completion. Successful course completions are reported to the IRS within three business days.