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An 800 number connects you to nationally recognized practice leaders who will speak on important issues and emerging trends in the law. You can also pose your own questions to the speakers. Written materials and other details are emailed in advance to pre-registrants.
2 CLE hours
Choice of entity is not about a single point in time. It’s about choosing the right entity for a client’s business over time – formation and capitalization, operation and growth, and perhaps eventual sale or liquidation. It’s not only about tax favorable treatment at formation but about tax (not merely federal but also state and local) when the company makes a distribution to owners or sells property or pays an employee-owner salary in lieu of a distribution. Choice of entity involves how management authority is allocated, the fiduciary duties and liability that go along with those duties, and how these duties can be modified, if at all, and how ownership rights may not always correspond to information rights. It’s also about a client’s specific businesses, and regulatory requirements and investor expectations in that industry or sector. This program will provide you with a practical guide to advanced choice of entity considerations for your client’s business.
Day 1: June 9, 2016:
• Advanced choice of entity considerations – management, tax, finance, regulatory, employee benefit and other considerations
• Impact of industry norms, investor expectations, and regulatory requirements on choice of entity
• Management and information rights, and the ability to restrict
• Fiduciary duties and liability of owners and managers, and the ability to modify these duties
• Economic rights – choosing among capital rights, income rights, tracking rights
• Circumstances when an unincorporated entity might be the right choice versus a C or S Corp
• How choice of entity for a service-based business differs from other types of businesses
Day 2: June 10, 2016:
• Planning to tax-efficiently withdraw money from the business and the impact of the new 3.8% on net investment income
• Anticipating liquidity events – sale of the company, liquidation of the company, new investors/members
• Employment tax planning opportunities among LLCs and S Corps
• Overlooked state and local tax considerations in choice of entity
• Owner and employee fringe benefit considerations
• When the first choice wasn’t right – considerations when an entity needs to convert to another form
Allen Sparkman is a partner in the Houston and Denver offices of Sparkman Foote, LLP. He has practiced law for over thirty years in the areas of estate, tax, business, insurance, asset protection, and charitable giving. He has written and lectured extensively on choice-of-entity, charitable giving and estate planning topics. He is the Colorado reporter for the books "State Limited Partnership Laws" and "State Limited Liability Company Laws," both published by Aspen Law & Business. He has also served as president of the Rocky Mountain Estate Planning Council. Mr. Sparkman received his A.B. with honors from Princeton University and his J.D. with high honors from the University of Texas School of Law.