Evaluating the S Corporation Election

An S corporation election can create meaningful savings for the right client, but it can also add complexity and additional costs. In this session, we’ll use a practical decision framework to evaluate when an S corporation election makes sense and when it does not. We’ll walk through how to estimate realistic tax savings, apply reasonable compensation fundamentals, weigh administrative and compliance requirements, and set clear expectations with clients regarding what will change after the election.

Objectives

Upon completion of this session, you will be able to:

• Identify client profiles where an S corporation election is likely to provide a tax benefit and when it does not
• Estimate potential tax savings from an S corporation election using realistic inputs
• Apply reasonable compensation fundamentals when evaluating an S corporation scenario
• Identify the payroll and compliance obligations created by an S corporation election
• Evaluate added compliance costs and administrative burden when advising on an S corporation election
• Use expectation management steps to align the client’s goals with the realities of operating as an S corporation

CPE