Due Diligence Minefield: How to Check S Corporation Status

Due Diligence Minefield: How to Check S Corporation Status

Introduction: A Second Class of Stock Isn’t Kosher If you’ve already read “S corporations: Advantages and Disadvantages,” you may be wondering why we’re talking about S-corporations and classes of stock. As you may recall, the requirements determining eligibility for...
Earnings and Profits & How to Calculate Them

Earnings and Profits & How to Calculate Them

You may hear your tax advisor talk about earnings and profits. Why is it important to compute earnings and profits? The answer is: this calculation allows a business to determine whether a distribution paid to shareholders would be treated as a taxable dividend, a...
Shareholder Distribution – The ABCs of Distributions

Shareholder Distribution – The ABCs of Distributions

The following article will explain what constitutes a distribution. To learn more about the different kinds of distributions, read The Impact of Distributions on Corporations. From a tax perspective, distributions may be viewed in one of three possible ways:...