Numerous closely-held businesses operate a S corporations because of the many tax advantages this type of entity provides its owners/shareholders. Most notable is the pass-through of all items of income, credits and deductions to the individual shareholders. However, in the context of business succession planning, many business owners (and their advisors) are unaware of the advantages a stock redemption plan can provide, such as the ability for surviving shareholders to receive a full increase in cost basis. Many believe that the rules that apply to regular C corporations are the same as
S corporations. That’s not entirely true.
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The information contained in archived material was based on information that was current prior to the expiration date. This historical material should be used as a reference only and may not be indicative of current circumstances or facts.
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