S Corporations

In my last entry, I provided a top level discussion of what an S Corporation is.  Here I will provide an example to show how important electing S Corporation status could be when you look to sell your business to an outside buyer.

One of the concepts least understood by many business owners, and even others in the business community, are “S” Corporations.  Although I’ll cover a few of the issues surrounding this entity type, my main goal here is to highlight why, in the vast majority of cases, it makes sense to be treated as an S Corporation for tax purposes.  It’s a decision that all business owners should have already addressed or should be addressing.  Over the years I’ve met business owners who have said that no one in their trusted advisor circle ever raised the issue for consideration.  That