2020 Choice of Entity for Service Businesses

Familiar tradeoffs in choice of entity for businesses selling goods are scrambled when it comes to service-based businesses. This is particularly true with regard to tax law and the relatively new deduction for certain types of income in pass-through businesses. Choice of entity for service businesses also differ in consideration of distributions and employment taxes, incentive compensation and vesting of restricted ownership interests, and the eventual sale, liquidation or accession of new owners.  This program will provide you with practical guide to choice of entity for service businesses with special emphasis on the new tax law.

• How the new deductions for pass-through income applies to service businesses
• What income and types of businesses are covered or not
• Regulatory, industry, finance and other non-tax considerations for service businesses
• Using multiple entities to achieve variable ownership, management and tax goals
• Converting entities if a prior choice of entity is no longer sound

Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics, elimination of bias or Kansas credit.