Archive: c corporation

Should your Medical Practice be a “C” Corporation?

The 2017 Tax Cuts and Jobs Act created the Internal Revenue Code (IRC) 199A, which provides for a maximum of 20% deduction of business profits for sole practitioners and pass-through entities and drops the corporate income tax rate to a flat 21%—a dramatic decrease from 35% previously. For specified service trade or businesses, which includes […]
March 13, 2019

Will Tax Reform Make C-Corporations the New Entity of Choice?

As the Tax Reform and Jobs Act clears Congress and awaits the President’s signature, taxpayers are anxiously trying to determine what this will mean for them. Many are speculating that there will be a flurry of pass-through conversions to C-Corporation taxation to take advantage of the proposed flat 21% tax rate. Will conversions to C-Corporation […]
December 28, 2017

Section 1202—A Powerful Tool: C-Corporation Shareholders Limit Tax Liability

Getting familiar with section 1202 also known as the qualified small business stock is a powerful tool for those looking for tax relief. If you are an established high tech company doing business with the government or private industry, your business may have progressed from being a small one or two person cash basis S […]
November 28, 2017

M&A Shop Talk VII

The most recent M&A Shop Talk highlighted the major tax advantages of completing a leveraged ESOP buyout transaction as an exit strategy for S corporation structured small businesses with no liquidity except its workforce. Now, we’ll cover a parallel discussion in the context of a C corporation target. Currently, IRC Section 1042 tax provisions allow owners with […]
June 7, 2016

Escaping the Built-In Gains Tax

Are you considering converting your C corporation to an S corporation? If so, being aware of the built-in gains tax that may be assessed to your corporation is essential. With the proper planning, such as timing the sale of the built-in gain assets, you can escape paying the dreaded built-in gains tax. What is built-in […]
January 26, 2016

Tax Compliance Series for Construction Contractors: Domestic Production Activities Deduction

Previous installments of Aronson’s Tax Compliance Series for Construction Contractors focused on methods of accounting, the lookback provision, and long-term contract adjustments. Today, we switch our focus to a fantastic opportunity to not only comply with IRS regulations, but benefit from a big tax deduction. The Domestic Production Activities Deduction, created by the American Jobs […]
July 8, 2015

Integrating Entity Structure & Accounting Method for Tax Optimization

The most powerful tax planning strategy available to an entrepreneur is the selection and integration of an entity structure and accounting method that balances personal needs with the overall business model.  Tax constraints and limitations make the selection process complicated, but with some careful planning and foresight, you can achieve tax optimization throughout the business […]
June 26, 2014

Key Tax Questions to Ask Before Buying or Selling a Business

Are you considering selling your business? Have you considered the tax issues associated with that sale? A seemingly typical sales negotiation and transaction can go bad if tax implications haven’t been property analyzed up front by a qualified professional.  It is extremely difficult – and sometimes impossible – to roll back the clock on a […]
May 14, 2014

Built-in Gains Tax Planning Opportunity Expires on 12/31/13

If you are a former C corporation with an S election older than five calendar years (i.e., your business has been an S corporation since 1/1/2008) and are currently subject to built-in-gains (BIG) tax implications, there might be immediate relief in 2013 to permanently avoid BIG tax ramifications without IRS scrutiny. General background information:  The […]
November 12, 2013

Tax Planning Strategies for Doing Business Abroad

These days, many emerging businesses find themselves doing business abroad. Technology has drastically changed the traditional business model, enabling even a small business to operate globally.  Many companies often ask whether they should operate through their existing U.S. business (i.e., operate as an incorporated “branch”) or operate through a separate organized foreign entity. Quite often, […]
September 6, 2013