S Corporation Inversion Using An “F” Reorganization

Originally Published in the Nebraska CPA Magazine Pub. 4 2022 Issue 2.

Many new business owners are excited by the flow-through treatment of income and loss as well as the self-employment tax savings that can be available to entities that elect to be taxed under Subchapter S of the Internal Revenue Code of 1986, as amended (the “Code”). Such savings, which stem from the bifurcation of salary versus distributions, can be reason enough to make such an election, from an economic perspective. There are several downsides, however, to making an “S” election that business owners should consider prior to making such an election… View the full article here.