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S Corporations Owning Multiple Entities: Mastering Tax Reporting and Planning Opportunities

Reconciling Intracompany Transfers, Utilizing S Corp Parent-Sub Structures, Allocating Income Using LLCs

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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This program is included with the Strafford CPE+ Pass. Click for more information.
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Conducted on Thursday, July 8, 2021

Recorded event now available

This course will provide tax advisers with a practical guide to the planning and reporting issues and opportunities that arise when an S corporation owns multiple entities under common control. The panel will discuss the ramifications of an S corporation owning more than one LLC or partnership, as well as S corporations operating in tandem to hold multiple entities. The event will detail the specific reporting requirements of these arrangements, including reconciliation of intracompany transfers. It will offer guidance as to the tax impact of various multi-entity structures under an S corporation umbrella.

Description

Owners of multiple business lines frequently elect to segment individual business units, often under the umbrella of an S corporation. Whether for liability protection reasons, branding strategies, or other tax or business reasons, S corporation owners often will set up separate entities, with the S corporation serving as either a parent or a holding company.

S corporations must make equal distributions to all shareholders; setting up LLCs or other entities under an S corporation umbrella allows business units to adjust income allocations to stay within the S corporation distribution rules. These types of arrangements often work very well for real estate developers and professional service corporations.

Tax professionals must be well versed on the reporting issues unique to multiple business structures involving S corporations. Tax advisers serving multiple entities under an S corporation umbrella must track intracompany transfers and transactions and ensure that neither the downstream nor upstream entities inadvertently jeopardize the company's S corporation election.

Listen as our experienced panel provides a thorough and comprehensive guide to the tax nuances of multiple entities owning S corporations.

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Outline

  1. Types of multiple structures under S corporation umbrella to compartmentalize business units
  2. Holding/operating company structure
  3. Multi-tier structures
  4. 199A and multi-tier holdings
  5. Selling a QSub
  6. When subsidiary partnerships need to file tax returns

Benefits

The panel will review these and other important issues:

  • S corps having holding companies for LLCs and partnerships
  • Considerations when selling a QSub
  • Merger and acquisition issues involving S corporations acquiring other S corps
  • Impact of Section 199A on multi-tier holdings

Faculty

Jamison, Robert
Professor Robert W. Jamison, CPA
Professor Emeritus of Accounting
Indiana University

Mr. Jamison is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His...  |  Read More

Watson, Jason
Jason Watson, CPA
Founding Partner
WCG

Mr. Watson advises small business owners in creating a map for the future. His focus is on S corporations,...  |  Read More