S corporations and partnerships are some of the most flexible, but complex, organizational structures. It’s essential to work through the various tax complexities in order to avoid double taxation.
As a partnership, avoiding litigation requires careful consideration and planning regarding:
- Capital account allocations
- Complex operating agreement interpretations
- Proper debt allocations
- Income allocation
- Mergers and termination
For S corporations, considerations can include:
- Determining qualified shareholders
- Allocating income properly
- Determining tax basis and at-risk basis
Balancing these complexities can seem like an intricate dance, but with the right guidance and planning, you can lead your business down the path to success.
Our experienced team has specific knowledge related to the taxation dynamics and requirements of pass through entities. We are a dedicated resource providing advice for alternative arrangements on transactions and helping navigate complex technical issues to save you money, and keep you in compliance.
Call our team today.
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