TAX1926 - Should you Convert to a C-Corp

Description

The TCJA drop in the corporate tax rate to a flat 21% makes the C corporate form of doing business sound attractive. But Congress offered temporary rate relief for other entities with a new qualified business income (QBI) deduction of 20%, but not all business activities and owners qualify for it. Pre-TCJA changes to capital gains incentive Section 1202 makes C corporations useful for attracting capital, but not all types of businesses qualify. And some TCJA changes limiting deductions for employees might lead some employees to consider a 'loan-out' entity. This session will explore the pros and cons of C corporations after the TCJA and due diligence and planning tips in considering converting to or forming this type of entity.

Learning Objectives:

1. Describe the TCJA changes that make C corporations a favored or perhaps unfavored entity choice.
   
2. Understand the due diligence and planning considerations relevant to converting to or forming as a C corporation.

Speaker(s):

• Annette Nellen, CPA, CGMA, Esq, Professor, MST Program Director, San Jose State University