Wednesday, July 23 | 10:30 a.m. - 12:10 p.m. | Concurrent Session
Navigating C-to-S Conversions for a Tax-Smart Exit
2 CPE for AFSP, EA, CFP®, CPA, CRTP
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​Exiting a business is one of the most important financial decisions a business owner will make, and choosing the right strategy, whether it be selling, merging or converting to an S-corp, can significantly impact tax outcomes. This session will explore when and why a business owner should convert a C-corp to an S-corp before selling, the tax differences between asset sales and stock sales, and whether merging with another entity could be a better alternative. We’ll also tackle the often overlooked tax treatment of non-compete agreements, employment contracts and earnout structures, helping tax professionals anticipate and mitigate unexpected tax liabilities. Attendees will leave with a clear decision-making framework to guide clients through a tax-efficient and strategically sound business transition.
Objectives
Upon completion of this session, you will be able to:
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Analyze the tax implications of converting a C-corp to an S-corp before a sale, including how to manage built-in gains (BIG) tax exposure and avoid double-taxation
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Compare the tax consequences of asset vs. stock sales and determine when a merger may provide a more tax-efficient exit strategy
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Evaluate the taxation of non-compete agreements, earnouts and employment contracts, and develop strategies to structure these elements for optimal tax treatment
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CPE information
Duration: 100 minutes
Course level: Advanced
Prerequisite: Familiar with corporate taxation
Advanced preparation: None
Delivery method: Group Live
