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.

Preparation

None