Now Is the Time: Converting a C Corporation to an S Corporation or LLC

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Published by the American Institute of Certified Public Accountants in The Tax Adviser, 2012. Users may access this article here.


American Institute of Certified Public Accountants

Publication Source

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.