Aubrey Has Been Operating His Business as a C Corporation

question 94

Essay

Aubrey has been operating his business as a C corporation for the past 5 years. The corporation pays him a reasonable salary. The profits of the corporation, after paying Federal income tax, are distributed to him each year as a dividend. He is considering electing S status for his corporation in order to avoid double taxation. What factors should he consider assuming after-tax earnings will continue to be distributed to him?

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Definitions:

Case Status Flags

Indicators used to denote the current standing or progress of a case or legal matter in a tracking system or repository.

Case History

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Parallel Citations

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Key Citations

Important references or legal precedents that support or refute a legal argument or position in court documents.