This course provides an in-depth comparative analysis of Limited Liability Companies (LLCs) and S Corporations, focusing on their tax implications, compliance requirements, and operational structures. Participants will explore key aspects of entity formation, tax treatment, and compliance with corporate formalities. Topics include electing Subchapter S status, mechanics of Form 2553, and relief options for late filings under Rev. Proc. 2022-19. The course also highlights entity-specific tax forms, accountable plans, taxable fringe benefits, officer reasonable compensation, estate planning, business continuation planning, and audit strategies. Additionally, participants will review Schedules K-1, K-2, K-3, and effectively connected income for both entity types.
*Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com
DESIGNED FOR
CPAs, EAs, and tax professionals advising or working with LLCs and S Corporations
BENEFITS
- Compare and contrast LLCs and S Corporations to determine suitability for various clients.
- Provide a general overview of LLC structures and their tax implications.
- Discuss the interplay of LLCs and S Corporations with self-employment tax.
- Prepare Form 2553 for electing Subchapter S status and identify relief options for late filings.
- Analyze Rev. Proc. 2022-19 and Rev. Proc. 2023-3, and understand their differences and applications under I.R.C. §1361 and §1362.
- Identify and address S Corporation eligibility errors and implement corrective measures.
- Review corporate governance procedures and compliance requirements for LLCs and S Corporations.
- Examine shareholder stock and debt basis for S Corporations.
- Highlight key aspects of Forms 1120S, 1065, and related schedules (K-1, K-2, K-3).
- Discuss officer reasonable compensation and general partner guaranteed payment requirements.
- Apply facts and circumstances in advisory services to determine reasonable compensation.
HIGHLIGHTS
- Comparative analysis of LLCs and S Corporations
- Entity formation, compliance, and operational structures
- Self-employment tax and its implications for LLCs and S Corporations
- Form 2553 preparation and relief for late filings
- Rev. Proc. 2022-19 and Rev. Proc. 2023-3: analysis and application
- S Corporation eligibility errors and corrective measures
- Corporate governance and formalities for both entity types
- Shareholder stock and debt basis for S Corporations
- Forms 1120S, 1065, and related schedules (K-1, K-2, K-3)
- Officer reasonable compensation and general partner guaranteed payments
- Audit strategies, estate planning, and business continuation planning
PREREQUISITES
None
ADVANCE PREPARATION
None