LLC's & S Corps -- A Comparative Analysis

Overview

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

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

Designed For

CPAs, EAs, and tax professionals advising or working with LLCs and S Corporations

Objectives

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.