Managing Your Client's Business Entity Dissolution
Duration: 120 Minutes
Liquidation and the ultimate dissolution of a client's business entity can be a significant task for any practitioner. It could be precipitated by your client profitably selling the assets of the entity or the entity's unit of ownership or involve an entity with a failed activity, where the client has lost interest and moved on to other business opportunities with less than stellar cooperation as the practitioner handles the dissolution details. This presentation includes the tools necessary to assist with either scenario for C Corporations, S Corporations, LLCs filing as partnerships and LLCs filing as corporations.
Objectives of the Presentation
The similarities and differences in dissolutions of the various entity types (C Corporation, S corporation and LLC)
Why Should you Attend
- Increase competency with the liquidation and dissolution details of each business entity type
- Learn how the various IRC code sections impact liquidation profits and losses, i.e., Sec 1202 & 1244
- Gain expertise in completing special tax forms involved in dissolutions
- Understanding the difference between regular distributions and liquidating distributions in the various entity types
- Improve skill in managing liquidating distributions and associated tax gains
- Dealing with distribution of the entities installment obligations
- Dealing with sale of goodwill (client's book of business)
This session with taxation expert Vicki L. Mulak, EA, CFP®, will present the tools necessary to assist you in handling a business entity's dissolution in either scenario. Vicki will discuss the dissolution details for C corporations, S corporations, LLCs filing as partnerships, and LLCs filing as corporations. You will learn specifically about Internal Revenue Code (IRC) Sections 1202 and 1244. Vicki will provide helpful examples of common scenarios with calculations and completed tax forms.
Who will Benefit
- Target audience is tax practitioners that assist clients with entity dissolutions
- Enrolled agents
- Other tax professionals involved with S corporation tax returns and the tax returns of the S corporation's shareholders
Closing a business entity for tax purposes involves properly reporting the disposition of each asset and liability on the business' balance sheet. Assets are either sold or distributed to owners. Liabilities are either paid off or assumed by owners. This session will discuss the taxation consequences of dissolution to the business and the owners of corporations and LLCs.