Now Is the Time: Converting a C Corporation to an S Corporation or LLC
American Institute of Certified Public Accountants
The Tax Adviser
For closely held corporations that still have C status, the current uncertain economic environment, depressed asset values (especially in certain real estate markets), and historically low income tax rates on distributions to individuals (qualified dividends) from C corporations (which are scheduled to expire at the end of 2012) may present an opportunity to exit C status and its attendant double taxation at an acceptable current tax cost. Tax advisers should be talking to their C corporation clients about the opportunities that now exist to avoid substantial future taxes.
Recommended CitationLynch, Michael F.; Casten, David; and Beausejour, David, "Now Is the Time: Converting a C Corporation to an S Corporation or LLC" (2012). Accounting Journal Articles. Paper 96.