APPENDIX F
Practical Considerations in Selecting Entity
  1. Choice of Entity. What options are available?
  1. Sole Proprietor/One Member LLC.
  1. C Corporation.
  1. S Corporation.
  1. Partnership.
  1. General Partnership.
  1. Limited Partnership.
  1. Publicly Traded Partnership.
  1. Limited Liability Entities
  1. LLC
  1. LLP
  1. LLLP
  1. LPA
  1. Investment Company (see § 351(e)).
  1. Trust
  1. Grantor
  1. Complex
  1. Simple
  1. Living
  1. Charitable Remainder Trust
  1. GRAT/GRUT
  1. Cooperative
  1. Tax Exempt Organization
  1. Foreign Corporations
  1. REIT
  1. REMIC
  1. Mutual Funds (RICs)
  1. Client's Objective.
  1. Operate Trade or Business
  1. S Corporation
  1. LLC/LLP
  1. Investment
  1. a. LLC
  1. Estate Planning - FLP
  1. Marketability/Minority Discounts
  1. Step-up in Basis
  1. Factors. What factors should be considered in advising a client as to the best way to operate a trade or business, hold property for investment, or achieve an estate planning objective such as a step-up in basis or a minority/marketability discount?
  1. Cost.
  1. Asset Protection.
  1. Slip and Fall.
  1. Protect From Self.
  1. Audit Risk.
  1. Tax Factors.
  1. Selfish Reasons.
  1. Read
  1. Understand
  1. Apply Correctly
  1. How important is it that you are always correct?
  1. Explain to client
  1. Bill for time
  1. Collect
  1. Tax Factors to Consider in Selecting Entity.
  1. Formation.
  1. Investment Company
  1. Services
  1. Operation.
  1. Tax Return.
  1. Taxable Year End.
  1. Method of Accounting.
  1. T.I.
  1. NOL
  1. C.L.
  1. Municipal Bond
  1. Charitable Contribution
  1. Dividends Received Deduction
  1. Taxes.
  1. Regular Tax
  1. AMT & ACE
  1. PHC
  1. AET
  1. BIG
  1. Tax on ENPI
  1. Estimated Tax Payments
  1. Employment Taxes
  1. Distributions.
  1. Stock.
  1. Property Distributions.
  1. Proportionate.
  1. 1099's.
  2. Line 20, Schedule K.
  1. Sub C E&P.
  1. AAA.
  1. Redemptions.
  1. Dividend.
  1. Sale or Exchange.
  1. Sale of Interest.
  1. Capital Gain.
  1. Capital Loss.
  1. Ordinary Gain.
  1. Ordinary Loss - § 1244.
  1. Section 1202.
  1. Section 1045.
  1. Section 1042.
  1. Liquidations.
  1. § 331, § 334, § 336
  1. § 332, § 334, § 337
  1. § 731 to § 736
  1. Reorganization - Mergers and Divisions.
  1. A reorg.
  1. B reorg.
  1. C reorg.
  1. D reorg.
  1. Estate Planning.
  1. Step-up in Basis.
  1. Minority or Marketable Discounts.
  1. LLC Specific Tax Problems.
  1. Association Taxable as Corporation.
  1. Check the Box Regulations.
  1. One-Member LLC.
  1. Taxable Year End.
  1. Method of Accounting.
  1. Tax Matters Partner.
  1. Contributions of Property
  1. Substantial Economic Effect and Reverse § 704(c) Allocations.
  1. SE Income.
  1. Allocation of Debt.
  1. Deductibility of Losses.
  1. COD Income.
  1. Payments to Retiring Member.