References in periodicals archive ?
Eustice, Subchapter S Corporations and Partnerships: A Search for the Pass Through Paradigm (Some Preliminary Proposals), 39 TAX L.
The assumption that because there is already one unfair business tax, that of double taxation on Subchapter S corporations, that it makes sense to add the same faulty reasoning and the same double taxation to an LLC is faulty logic.
Drawing on a case in which the target corporation is a subchapter S corporation and the parties intend to make an election under Sec.
Reducing the number of levels of federal income tax imposed on profits the seller derives from the transaction is key and is tied to both the structure of the company--whether it is organized as a Subchapter S, Subchapter C, LLC or other type of company--and to the structure of the deal itself.
Do payments, either direct or indirect, to a subchapter S corporation always create an increase in the taxpayer's basis?
Many of these businesses were incorporated 20 to 30 years ago when limited liability corporations (LLCs) did not exist or were unpopular and Subchapter S corporations had other disadvantages.
S corp simplifications include: (1) All members of a family (up to six generations) are treated as one shareholder; (2) the number of shareholders permitted increases from 75 to 100; (3) IRAs may be shareholders of bank S corps; (4) unexercised powers of appointment will be disregarded for determining the potential current beneficiaries of ESBTs; and the IRS may waive inadvertent invalid qualified subchapter S subsidiary elections and terminations.
The legislation includes important provisions ICBA has long advocated that will allow more small businesses to reduce punitive double taxation and onerous regulations by qualifying as Subchapter S corporations.
These figures included companies that had zero earnings as well as Subchapter C and Subchapter S corporations.
They were the possibilities that a smaller corporation's shareholders might elect to be taxed under Subchapter S of the Internal Revenue Code or that a partnership might be established as a limited partnership.
If you were a Subchapter S, the LLC saves you potential built-in gains tax issues," Anderson said.
The members are grouped by Subchapter S and Subchapter C filing status and further separated according to asset-size.